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)	-60	+10	+15	+15	+20	+20	+20	15.0
Switzerland (Millions of Swiss francs)	-120	+20	+30	+30	+35	+35	+35	12.8

The spot exchange rate for euros is $1.3/, while the rate for Swiss francs is CHF 1.5/$. 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 Principles of Corporate Finance.