JASON company, a U.S based international company, is considering an overseas investment. The Euro business strategy department has come up with a plan for building a new factory in Italy. The initial cost of this project is expected to be 3.7 million EUROS. The UNLEVERED free cash flows are expected to be 1.6,1.2, 1.5, and 1.3 million EUR for the next four years respecively. The current spot exchange rate for EUROS is 0.5. The risk free rates in the US and Euro zone are 4% and 7%, respectively. Jason company requires 11 percent return on dollar investment, Should Jason company make this investment? (based on NPV, using home currency method?

JASON company, a U.S based international company, is considering an overseas investment. The Euro business strategy department has come up with a plan for building a new factory in Italy. The initial cost of this project is expected to be 3.7 million EUROS. The UNLEVERED free cash flows are expected to be 1.6,1.2, 1.5, and 1.3 million EUR for the next four years respecively. The current spot exchange rate for EUROS is 0.5. The risk free rates in the US and Euro zone are 4% and 7%, respectively. Jason company requires 11 percent return on dollar investment, Should Jason company make this investment? (based on NPV, using home currency method