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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 Switzerland. 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 Switzerland. The forecasted cash flows from the proposed plants are as follows: Co C1 C2 C3 C4 C5 C6 IRR (%) Germany (millions of euros) -69 +19 +24 +24 +29 +29 +29 26.6 Switzerland (millions of Swiss francs) -103 +29 +39 +39 +44 +44 28.5 The spot exchange rate for euros is $1.39/, while the rate for Swiss francs is SFr1.59/$. The interest rate is 6% in the United States, 5% in Switzerland, 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 8% would be acceptable. a. Calculate the NPV in dollars for the German plant. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. Net present value million b. Calculate the NPV in dollars for the Swiss plant. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Net present value millions

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