Suppose that Alexander Co$.,$ a U$.$S$.-$based MNC$,$ is trying to decide the location of a new project in which they plan to invest. Alexander can invest in

the new project in either the United States or Germany. Upon completion, the project will comprise $50\mathrm{.}00\%$ of Alexander's total invested funds, with

the remaining $50\mathrm{.}00\%$ being invested in the United States.

Forecasted information regarding the proposed project over a $5-$year period, including the $50\mathrm{.}00\%$ of funds invested in the existing business, are

shown in the following table:

If the firm decides to invest in the project located in the United States, the firm's overall expected return $($after taxes$)$ is forecasted to be $1$

percent. If the firm decides to invest in the project located in Germany, the firm's overall return $($after taxes$)$ is forecasted to be