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Carpet Baggers, inc, is proposing to construct a new bagging plant in a country in Europe. The two prime candidates are Germany and Switzeriand: The

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Carpet Baggers, inc, is proposing to construct a new bagging plant in a country in Europe. The two prime candidates are Germany and Switzeriand: The forecasted cash flows from the proposed plants are as follows: The spot exchange rate for euros is $1.43/C, while the rate for Swiss francs is SFr1.63/\$. The interest rate is 6% in the United S tates, 5% : in Switzeriand, and 7% in the euro countries. The financial manager has suggested that, if the cash flows were stated in dollars, a return in excess of 9% would be acceptable. a. Calcilate the NPV in dollars for the German plant (Do not round intermedlate calculations. Enter your answer in mililons rounded to 2 declmal places. b. Caiculate the NPV in dollors for the Swiss plant, (Do not round intermediate calculations. Enter your answer in millions rounded to 2. decelmat places.1

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