Carpet Baggers Inc. is proposing to construct a new bagging plant in a country in Europe. The two prime candidates are Germany

and Switzerland. The forecasted cash flows from the proposed plants are as follows:

The spot exchange rate for euros is $,$ while the rate for Swiss francs is CHF $\frac{1\mathrm{.}5}{\text{\$}}.$ The interest rate is $5\%$ in the United States,

$4\%$ in Switzerland, and $6\%$ in the euro countries. The financial manager has suggested that, if the cash flows were stated in dollars, a

return in excess of $10\%$ would be acceptable.

Should the company go ahead with either project? If it must choose between them, which should it take? Justify your answer.

Cite six $(6)$ peer$-$reviewed articles not including your textbook.