1. A U.S. computer manufacturer is seeking to establish a subsidiary in Germany. Only the following summary of expected after-tax cash flows is available. Note some cash flows are in Euros and some in US Dollars. All of the subsidiary's net cash flows are expected to be remitted to the parent. The current spot rate is $1.3000 /Euro, and the Euro is expected to appreciate 2% per year relative to the dollar. a) If the discount rate for the project is 15%, should the project be undertaken according to the NPV criterion? b) Conduct a SENSITIVITY ANALYSIS in EXCEL by varying i) the exchange rate change by +/0.5% and ii) the WACC by +/1%. Show a chart of your results c) Conduct a SCENARIO ANALYSIS in EXCEL by simultaneously varying the exchange rate change and WACC in the base/best/worst case scenarios. 1. A U.S. computer manufacturer is seeking to establish a subsidiary in Germany. Only the following summary of expected after-tax cash flows is available. Note some cash flows are in Euros and some in US Dollars. All of the subsidiary's net cash flows are expected to be remitted to the parent. The current spot rate is $1.3000 /Euro, and the Euro is expected to appreciate 2% per year relative to the dollar. a) If the discount rate for the project is 15%, should the project be undertaken according to the NPV criterion? b) Conduct a SENSITIVITY ANALYSIS in EXCEL by varying i) the exchange rate change by +/0.5% and ii) the WACC by +/1%. Show a chart of your results c) Conduct a SCENARIO ANALYSIS in EXCEL by simultaneously varying the exchange rate change and WACC in the base/best/worst case scenarios