It is the year 2021 and Pork Barrels, Inc., is considering construction of a new barrel plant in Spain. The forecasted cash flows in millions of euros are as follows: -87 C1 C2 +17 +27 C3 +30 C4 C5 +34 +32 The spot exchange rate is $1.27 = C1. The Interest rate in the United States is 11%, and the euro Interest rate is 8%. You can assume the pork barrel production is effectively risk-free. a-1. Calculate the NPV of the euro cash flows from the project. a-2. What is the NPV in dollars? b. What are the dollar cash flows from the project if the company hedges against exchange rate changes? c. Suppose that the company expects the euro to depreciate by 5% a year, will this affect the value of the project? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B Required Calculate the NPV of the euro cash flows from the project. (Do not round Intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) NPV euro million ng A Required A2 > 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: Germany (millions of euros) G C2 C3 C4 C5 C6 -61 Switzerland (millions of Swiss francs) -115 IRR (S) +11 +16 +16 +21 +21 +21 16.5 +31 +31 +36 +36 +36 +21 15.3 The spot exchange rate for euros is $1.316, while the rate for Swiss francs is SF1.51$. 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 11% 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 milions . c. Should the company go ahead with either project? Yes