Capital Budgeting $($LO$5)$ You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be CHF $16\mathrm{.}7$ million. The cash flows from the project would be CHF $4\mathrm{.}7$ million per year for the next five years. The Canadian dollar required return is $12\%$ per year, and the current exchange rate is CHF $\frac{1\mathrm{.}09}{C}AD.$ The going rate on EuroCanadian is $5\%$ per year. It is $4\%$ per year on Euroswiss.

a$.$ What do you project will happen to exchange rates over the next five years?

b$.$ Based on your answer in $($a$),$ convert the projected franc flows into dollar flows and calculate the NPV$.$

c$.$ What is the required return on franc cash flows? Based on your answer, calculate the NPV in francs and then convert to dollars.