3. You are evaluating a proposed expansion of an existing subsidiary located in Switzer- land. The cost of the expansion would be CHF 16.7 million. The cash flows from the project would be CHF 4.7 million per year for the next five years. The Cana dian dollar required returns is 12% per year, and the current exchange rate is is CHF 1.09=CA$1. The interest rate in Switzerland is 4% per year, and it is 5% in Canada, (a) What do you project the exchange rates over the next five years? (b) Based on your answer in part (a), convert the projected CHF flows into CA$ flows and calculate the NPV. (c) What is the required return on CHF cash flows? Based on your answer, calcu- late the NPV in CHF and then convert to dollars. (d) Suppose the real rates are equal in Canada and Switzerland. If the inflation in Switzerland is 3%, what would be the inflation rate in Canada