Carpet Baggers, Inc., is proposing to construct a new bagging plant in a country in Europe. The two prime candidates are Germany and Switzerland. The forecasted cash flows from the proposed plants are as follows:

	C0	C1	C2	C3	C4	C5	C6	IRR(%)
Germany (millions of euros)	80	+30	+35	+35	+40	+40	+40	36.9
Switzerland (millions of Swiss francs)	101	+39	+49	+49	+33	+33	+51	35.2

The spot exchange rate for euros is $1.50/, while the rate for Swiss francs is SFr1.70/$. The interest rate is 5% in the United States, 4% in Switzerland, and 6% in the euro countries. The financial manager has suggested that, if the cash flows were stated in dollars, a return in excess of 10% would be acceptable.

a. Calculate the NPV in dollars for the German plant. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.

b. Calculate the NPV in dollars for the Swiss plant. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

c. Should the company go ahead with either project? (Yes or No)

d. If it must choose between them, which should it take? (German plant or Swiss plant)

*****Show Explanations******