Open spreadsheet a. If this project was instead undertaken by a similar U.S.-based company with the same risk-adjusted cost of capital, what would be the net present value and rate of return generated by this project? Round your answers to two decimal places. NPV = 5 Rate of return b. What is the expected forward exchange rate 1 year from now? Round your answer to two decimal places. SF per U.S. $ c. If Sandrine undertakes the project, what is the net present value and rate of return of the project for Sandrine? Do not round intermediate calculations. Round your answers to two decimal places. Swiss Francs NPV = Rate of return E 1 1 1 B10 fx B D E 4 A 1 Foreign capital budgeting 2 3 Initial investment (U.S. Dollars) Year 1 Inflow (U.S. Dollars) 5 Risk-adjusted cost of capital 6 Spot rate, Number Swiss francs per U.S. Dollar 7 Yield, 1-yr. U.S. securities Yield, 1-yr. Swiss securities 9 10 U.S. NPV 11 U.S. rate of return 12 13 1-yr. forward rate. Swiss francs per US Dollar $2,000 $2,400 13.00% 0.74 7.25% 3.50% 8 Formulas #N/A #N/A #N/A 14 15 Initial investment (Swiss francs) 16 Year 1 Inflow (Swiss francs) #N/A #N/A 17 #N/A #N/A 18 NPV (Swiss francs) 19 Swiss rate of return 20 21 22 23 24 Sheet1 +