1. Blooms Inc. plans to establish its subsidiary firm with a project life of four years in Germany, and the following is the projected cash flows in euro for the following four years. Given WACC = 14%, and an initial investment of $10,000,000, complete the following two cases - Cash Flows to Parent firm, PV of Parent Cash Flows, and Cumulative NPVs). Optimistic scenario Y1 1,400,000 1.200 Y2 1,400,000 1.205 Y3 1,500,000 1.210 Y4 11,000,000 1.215 Remitted to Parent Co. ER = $/ CFs to Parent Co. PV Parent CFS (WACC = 14%) Initial Invest = $10,000,000 Cumulative NPV Pessimistic scenario Y1 Y2 Y4 1,400,000 1.100 1,400,000 1.105 Y3 1,500,000 1.110 11,000,000 1.115 Remitted to Parent Co. ER = $1.10/ CFs to Parent Co. PV Parent CFS (WACC = 14%) Initial Invest = $10,000,000 Cumulative NPV 3. Given the probability of 70% and 30%, respectively, for the optimistic and pessimistic scenarios, calculate the best projection of the firm's expected NPV