Use the "Base Case" to calculate net present value if the exchange rate is hedged at $1.17/CHF. Should the firm invest in this investment project?

0 1 1,500,000 CHE 130.00 CHF CHF 195,000,000.00 CHF CHF 70.00 CHF CHF 105,000,000.00 CHF CHF 10,000,000.00 CHF CHF 50,000,000.00 CHF CHF 50,000,000.00 CHF CHF 190,000,000.00 CHE CHF 5,000,000.00 CHF 2 1,625,000 135.00 CHF 219,375,000.00 CHF 74.00 CHF 120,250,000.00 CHF 11,000,000.00 CHF 52,500,000.00 CHF 52,500,000.00 CHF 236,250,000.00 CHF (16,875,000.00) CHF 3 4 1,675,000 1,815,200 140.00 CHF 145.00 CHF 234,500,000.00 CHF 263,204,000.00 CHF 78.00 CHF 82.00 CHF 130,650,000.00 CHF 148,846,400.00 CHF 12,100,000.00 CHF 13,310,000.00 CHF 55,125,000.00 CHF 57,881,250.00 CHF 55,000,000.00 CHF 57,500,000.00 CHF 252,875,000.00 CHF 277,537,650.00 CHF (18,375,000.00) CHF (14,333,650.00) CHF 5 6 7 1,873,250 1,675,000 1,700,000 150.00 CHF 155.00 CHF 159.00 280,987,500.00 CHF 259,625,000.00 CHF 270,300,000.00 86.00 CHF 90.00 CHF 95.00 161,099,500.00 CHF 150,750,000.00 CHF 161,500,000.00 14,641,000.00 CHE 16,105,100.00 CHF 17,715,610.00 60,775,312.50 CHF 63,814,078.13 CHF 67,004,782.03 60,000,000.00 CHF 62,500,000.00 CHF 65,000,000.00 296,515,812.50 CHF 293,169,178.13 CHF 311,220,392.03 (15,528,312.50) CHF (33,544,178.13) CHF (40,920,392.03) Demand Price per unit Total Revenue Variable cost per unit Total variable cost Annual lease expense Other fixed annual expenses Noncash expense (depreciation) Total expense Before-tax earnings Host government tax After-tax earnings Net cash flow Remitted by subsidiary (100% of net cash flow) Withholding tax on remitted funds Remitted after withhlding tax Salvage value Exchange rate cash flow to parent Present Value of parent cash flow Initial Investment by parent Cummulative NPV 1500000 1.4 $ 1.35 $ 1.38 $ 1.32 $ 1.41 $ 1.37 1.38 $ 125,000,000 0 1 1,500,000 CHE 130.00 CHF CHF 195,000,000.00 CHF CHF 70.00 CHF CHF 105,000,000.00 CHF CHF 10,000,000.00 CHF CHF 50,000,000.00 CHF CHF 50,000,000.00 CHF CHF 190,000,000.00 CHE CHF 5,000,000.00 CHF 2 1,625,000 135.00 CHF 219,375,000.00 CHF 74.00 CHF 120,250,000.00 CHF 11,000,000.00 CHF 52,500,000.00 CHF 52,500,000.00 CHF 236,250,000.00 CHF (16,875,000.00) CHF 3 4 1,675,000 1,815,200 140.00 CHF 145.00 CHF 234,500,000.00 CHF 263,204,000.00 CHF 78.00 CHF 82.00 CHF 130,650,000.00 CHF 148,846,400.00 CHF 12,100,000.00 CHF 13,310,000.00 CHF 55,125,000.00 CHF 57,881,250.00 CHF 55,000,000.00 CHF 57,500,000.00 CHF 252,875,000.00 CHF 277,537,650.00 CHF (18,375,000.00) CHF (14,333,650.00) CHF 5 6 7 1,873,250 1,675,000 1,700,000 150.00 CHF 155.00 CHF 159.00 280,987,500.00 CHF 259,625,000.00 CHF 270,300,000.00 86.00 CHF 90.00 CHF 95.00 161,099,500.00 CHF 150,750,000.00 CHF 161,500,000.00 14,641,000.00 CHE 16,105,100.00 CHF 17,715,610.00 60,775,312.50 CHF 63,814,078.13 CHF 67,004,782.03 60,000,000.00 CHF 62,500,000.00 CHF 65,000,000.00 296,515,812.50 CHF 293,169,178.13 CHF 311,220,392.03 (15,528,312.50) CHF (33,544,178.13) CHF (40,920,392.03) Demand Price per unit Total Revenue Variable cost per unit Total variable cost Annual lease expense Other fixed annual expenses Noncash expense (depreciation) Total expense Before-tax earnings Host government tax After-tax earnings Net cash flow Remitted by subsidiary (100% of net cash flow) Withholding tax on remitted funds Remitted after withhlding tax Salvage value Exchange rate cash flow to parent Present Value of parent cash flow Initial Investment by parent Cummulative NPV 1500000 1.4 $ 1.35 $ 1.38 $ 1.32 $ 1.41 $ 1.37 1.38 $ 125,000,000