Etemadi Amalgamated, a U$.$S$.$ manufacturing firm, is considering a new project in Portugal. You are employed in Etemadi's corporate finance department and are responsible for deciding whether to undertake the project. The expected free cash flows, in euros, are shown here: $03$ Year Free Cash Flow $($ million$)1921041211-15$ You know that the spot exchange rate is S $=$ $$1\mathrm{.}15/.$ In addition, the risk$-$free interest rate on dollars is $4\%$ and the risk$-$free interest rate on euros is $6\%.$ Assume that these markets are internationally integrated and the uncertainty in the free cash flows is not correlated with uncertainty in the exchange rate. You determine that the dollar WACC for these cash flows is $8\mathrm{.}5\%.$ What is the dollar present value of the project? Should Etemadi Amalgamated undertake the project? Etemadi Amalgamated, the U$.$S$.$ manufacturing company in Problem $7,$ is still considering a new project in Portugal. All information presented in Problem $7$ is still accurate, except the spot rate is now S $=$ $$0\mathrm{.}85/,$ about $26\%$ lower. What is the new present value of the project in dollars? Should Etemadi Amalgamated undertake the project?