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You are evaluating a proposed expansion of an existingsubsidiary located in Switzerland. The cost of the expansion wouldbe SF 21 million. The cash flows from the project would be SF 5.9million per year for the next five years. The dollar requiredreturn is 14 percent per year, and the current exchange rate is SF1.11. The going rate on Eurodollars is 4 percent per year. It is 2percent per year on Euroswiss. Use the approximate form of interestrate parity in calculating the expected spot rates.a. Convert the projected franc flows into dollar flows andcalculate the NPV.b-1.What is the required return on franc flows?b-2.What is the NPV of the project in Swiss francs?b-3.What is the NPV in dollars if you convert the franc NPV todollars?