Kihlstrom Equipment, a U$.$S$.$ based international company, is evaluating an overseas investment. Kihlstrom$$s exports of drill bits have increased to such a degree that it is considering building a distribution center in France. The project will cost $2$ million to launch. The cash flows are expected to be $0\mathrm{.}9$ million a year for each of next three years. The current spot rate for euros is $0\mathrm{.}5$ per $$.$ Risk$-$free rate in the United States is $5$ percent and in Euroland is $7$ percent. Kihlstrom$$s required return on dollar investment of this risk level is $10$ percent. Should Kihlstrom take this project? Perform the analysis using the home currency approach and foreign currency approach