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:

	C0	C1	C2	C3	C4	C5	C6	IRR(%)
Germany (millions of euros)	65	+15	+20	+20	+25	+25	+25	21.9
Switzerland (millions of Swiss francs)	102	+25	+35	+35	+40	+40	+40	24.3

The spot exchange rate for euros is $1.35/, while the rate for Swiss francs is SFr1.55/$. 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 10% 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.

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.)

c. Should the company go ahead with either project?

multiple choice 1

Yes

No

d. If it must choose between them, which should it take?

multiple choice 2

Swiss plant

German plant

please show work step by step. thank you