Etemadi Amalgamated, a U.S. manufacturing firm, is considering a new project in the euro area. You are in Etemadi's corporate finance department and are responsible for deciding whether to undertake the project. The free cash flows, in euros, are forecast to be the following:

Etemadi Amalgamated, a U.S. manufacturing firm, is considering a new project in the euro area. You are in Etemadi's corporate finance department and are responsible for deciding whether to undertake the project. The free cash flows, in euros, are forecast to be the following: Free Cash Flow ( million) Year - 15 2 10 3 11 4 12 You know that the spot exchange rate is S = $1.1500 / . In addition, the risk-free interest rate on dollars is 4.0%, and the risk-free interest rate on euros is 6.0% (and the yield curve is flat in both currencies). Assume that these markets are internationally integrated and the uncertainty in the FCFS is not correlated with uncertainty in the exchange rate. You determine that the dollar WACC for these cash flows is 8.5%. What is the dollar present value of the project? Should Etemadi Amalgamated undertake the project? Hint: Make sure to round all intermediate calculations to at least four decimal places. What is the dollar present value of the project? First, calculate the forward rates: The forward exchange rates for year 1 is $ . (Round to four decimal places.) The forward exchange rates for year 2 is $ /. (Round to four decimal places.) The forward exchange rates for year 3 is $ /. (Round to four decimal places.) The forward exchange rates for year 4 is $ /. (Round to four decimal places.) Next, you need to find the expected cash flow of the project: The expected dollar cash flow of for year 0 is $ million. (Round to four decimal places.) The expected dollar cash flow of for year 1 is $ million. (Round to four decimal places.) The expected dollar cash flow of for year 2 is $ million. (Round to four decimal places.) The expected dollar cash flow of for year 3 is $ million. (Round to four decimal places.) The expected dollar cash flow of for year 4 is $ million. (Round to four decimal places.) Finally, the net present value is this: The dollar present value of the project is $ million. (Round to four decimal places.) (Select from the drop-down menu.) Should Etemadi Amalgamated undertake the project