The spot exchange rate for euros is $1.23/, while the rate for RMB is 6.75/$. The interest rate is 2% in the United States, 5% in Italy for Euro investment, and 7% in China. The financial manager has suggested that, if the cash flows were stated in dollars, a return in excess of 12.5% would be acceptable.

. a. Calculate the NPV in dollars for the facility in italy

b. Calculate the NPV in dollars for the facility in china

c. Should the NPV in ero for facility in Italy.

d. Calculate the NPV in RMB for the facilitu in China.