Carpet Baggers, Incorporated, 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:

Candidates C$0$

C$1$

C$2$

C$3$

C$4$

C$5$

C$6$

IRR$(\%)$

Germany $($millions of euros$)61+11+16+16+21+21+2116\mathrm{.}5$

Switzerland $($millions of Swiss francs$)115+21+31+31+36+36+3615\mathrm{.}3$

The spot exchange rate for euros is EUR$/$USD $=1\mathrm{.}31,$ while the rate for Swiss francs is USD$/$CHF $=1\mathrm{.}51.$ The interest rate is $6\%$ in the United States, $5\%$ in Switzerland, and $7\%$ in the euro countries. The financial manager has suggested that, if the cash flows were stated in dollars, a return in excess of $11\%$ would be acceptable.

Calculate the NPV in dollars for the German plant.

Note: Do not round intermediate calculations. Enter your answer in millions rounded to $2$ decimal places.

Calculate the NPV in dollars for the Swiss plant.

Note: Do not round intermediate calculations. Enter your answer in millions rounded to $2$ decimal places.Carpet Baggers, Incorporated, 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:

The spot exchange rate for euros is EUR$/$USD $=1\mathrm{.}31,$ while the rate for Swiss francs is USD$/$CHF $=1\mathrm{.}51.$ The interest rate is $6\%$ in the

United States, $5\%$ in Switzerland, and $7\%$ in the euro countries. The financial manager has suggested that, if the cash flows were stated

in dollars, a return in excess of $11\%$ would be acceptable.

a$.$ Calculate the NPV in dollars for the German plant.

Note: 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.

Note: Do not round intermediate calculations. Enter your answer in millions rounded to $2$ decimal places.

c$.$ Should the company go ahead with either project?

d$.$ If it must choose between them, which should it take?

Should the company go ahead with either project?

If it must choose between them, which should it take?