ABC from Canada is considering a new investment project in the Euro zone. You assume

internationally integrated capital markets and no correlation between free cash flow uncertainty and

exchange rate uncertainty. You are asked to determine whether the project should be undertaken.

Expected free cash flows in euro for Year $0,1,2,3$ and $4$ are $-25,12,14,15$ and $15$ respectively.

The dollar WACC is $9\mathrm{.}5\%.$ The dollar risk free rate is $4\mathrm{.}5\%$ while the euro risk$-$free rate is $7\%.$

$($i$).$What is the company euro WACC?

$($ii$).$ What is the project NPV in euros?