You are a U.S.-based company that has some operations in France. The French operations are expected...

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You are a U.S.-based company that has some operations in France. The French operations are expected to import $23 million of inputs from the U.S. in year 1, $27 million in year 2, and $30 million in year 3. Free cash flows in euros from the French operation, excluding the U.S. input costs, are expected to be 60 million in year 1, 65 million in year 2, and 70 million in year 3. The spot exchange rate today is 1.38 $/. Assume that all cashflows occur at the end of each year, so that year 1's cashflows occur one year from today. The zero-coupon yield curves for U.S. Treasuries and German bunds (the German risk-free asset) are as follows: U.S. 1 year 0.10% 2 year 0.33% 3 year 4 year 5 year 0.97% 1.42% 1.69% Germany 0.10% 0.15% 0.28% 0.45% 0.69% The cost of capital for an operation with risk equivalent to the French operation's risk is 7% for U.S. investors. What is the present value of the French operation's FCF over the next three years in U.S. dollars? You are a U.S.-based company that has some operations in France. The French operations are expected to import $23 million of inputs from the U.S. in year 1, $27 million in year 2, and $30 million in year 3. Free cash flows in euros from the French operation, excluding the U.S. input costs, are expected to be 60 million in year 1, 65 million in year 2, and 70 million in year 3. The spot exchange rate today is 1.38 $/. Assume that all cashflows occur at the end of each year, so that year 1's cashflows occur one year from today. The zero-coupon yield curves for U.S. Treasuries and German bunds (the German risk-free asset) are as follows: U.S. 1 year 0.10% 2 year 0.33% 3 year 4 year 5 year 0.97% 1.42% 1.69% Germany 0.10% 0.15% 0.28% 0.45% 0.69% The cost of capital for an operation with risk equivalent to the French operation's risk is 7% for U.S. investors. What is the present value of the French operation's FCF over the next three years in U.S. dollars?