You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF $18$ million. The cash flows from the project would be SF $4\mathrm{.}9$ million per year for the next five years. The dollar required return is $12$ percent per year, and the current exchange rate is SF $1\mathrm{.}06.$ The going rate on Eurodollars is $5$ percent per year. It is $3$ percent per year on Euroswiss. Use the approximate form of interest rate parity in calculating the expected spot rates.

a$.$

Convert the projected franc flows into dollar flows and calculate the NPV$.($Do not round intermediate calculations and enter your answer in dollars, not in millions, rounded to two decimal places, e$.$g$.,1,234,567\mathrm{.}89)$

b$-1.$ What is the required return on franc flows? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$-2.$ What is the NPV of the project in Swiss francs? $($Do not round intermediate calculations and enter your answer in francs, not in millions, rounded to two decimal places, e$.$g$.,1,234,567\mathrm{.}89)$

b$-3.$ What is the NPV in dollars if you convert the franc NPV to dollars? $($Do not round intermediate calculations and enter your answer in dollars, not in millions, rounded to two decimal places, e$.$g$.,1,234,567\mathrm{.}89)$