Suppose that Swiss pharma, Roche, is evaluating a proposal to build a new facility in the United States. To calculate the projects net present value, Roche forecast the following dollar cash flows from the proposed project:

CASH FLOWS (in U.S dollars)($millions)

C0	C1	C2	C3	C4	C5
-1300	400	450	510	575	650

The expected average cost of capital is 9.5%. The spot rate of exchange of the Swiss Franc is 1.3/$.

Determine the NPV in U.S. dollars and in Swiss Francs. **PLEASE SHOW ALL STEPS/FORMULA(S) TO SOLUTION**

In the event you are pessimistic about the outlook for the U.S dollar, what actions might you take to protect your investment should you move forward with this project? **PLEASE EXPLAIN**