Question 14 Crystal Beverage Inc. is proposing to construct a new sparkling water factory in Europe. The two prime candidates are Germany and Switzerland. The forecasted cash flows from the proposed factories are as follows: Germany (millions of Euro) Switzerland (millions of Swiss francs) o aa a aaco IRR (%) | -60 +10 +15 +15 +20 +20 +20 15.0 -120 +20 +30 +30 +35 +35 +35 12.8 The spot exchange rate for euros is $1.1/C, while the rate for Swiss francs is CHF1.0/$. The interest rate is 5% in the United States, 4% in Switzerland, and 6% in the euro countries. The financial manager has suggested that, if the cash flows were stated in dollars, a return in excess of 10% would be acceptable. Should the company go ahead with either project? If it must choose between them, which should it take