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It is the year 2021 and Pork Barrels, Inc., is considering construction of a new barrel plant in Spain. The forecasted cash flows in millions of euros are as follows: -88 C1 +18 C2 +28 C3 +31 C4 +35 C5 +33 The spot exchange rate is $1.28 = 1. The interest rate in the United States is 7%, and the euro interest rate is 5%. You can assume that pork barrel production is effectively risk-free. a-1. Calculate the NPV of the euro cash flows from the project. a-2. What is the NPV in dollars? b. What are the dollar cash flows from the project if the company hedges against exchange rate changes? c. Suppose that the company expects the euro to depreciate by 5% a year, will this affect the value of the project? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B Required Calculate the NPV of the euro cash flows from the project. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) NPV euro million It is the year 2021 and Pork Barrels, Inc., is considering construction of a new barrel plant in Spain. The forecasted cash flows in millions of euros are as follows: -88 C1 +18 C2 +28 C3 +31 C4 +35 C5 +33 The spot exchange rate is $1.28 = 1. The interest rate in the United States is 7%, and the euro interest rate is 5%. You can assume that pork barrel production is effectively risk-free. a-1. Calculate the NPV of the euro cash flows from the project. a-2. What is the NPV in dollars? b. What are the dollar cash flows from the project if the company hedges against exchange rate changes? c. Suppose that the company expects the euro to depreciate by 5% a year, will this affect the value of the project? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B Required What is the NPV in dollars? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) NPV dollar million It is the year 2021 and Pork Barrels, Inc., is considering construction of a new barrel plant in Spain. The forecasted cash flows in millions of euros are as follows: -88 C1 +18 C2 +28 C3 +31 C4 +35 C5 +33 The spot exchange rate is $1.28 = 1. The interest rate in the United States is 7%, and the euro interest rate is 5%. You can assume that pork barrel production is effectively risk-free. a-1. Calculate the NPV of the euro cash flows from the project. a-2. What is the NPV in dollars? b. What are the dollar cash flows from the project if the company hedges against exchange rate changes? c. Suppose that the company expects the euro to depreciate by 5% a year, will this affect the value of the project? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B Required What are the dollar cash flows from the project if the company hedges against exchange rate changes? (Negative amounts should be indicated by minus sign. Enter your answers in millions. Do not round intermediate calculations. Round "Forward rate" to 3 decimal places and "Cash flow" to 2 decimal places.) Year 0 2 3 Forward rate Cash flow ($ million) It is the year 2021 and Pork Barrels, Inc., is considering construction of a new barrel plant in Spain. The forecasted cash flows in millions of euros are as follows: -88 C1 +18 C2 +28 C3 +31 C4 +35 C5 +33 The spot exchange rate is $1.28 = 1. The interest rate in the United States is 7%, and the euro interest rate is 5%. You can assume that pork barrel production is effectively risk-free. a-1. Calculate the NPV of the euro cash flows from the project. a-2. What is the NPV in dollars? b. What are the dollar cash flows from the project if the company hedges against exchange rate changes? c. Suppose that the company expects the euro to depreciate by 5% a year, will this affect the value of the project? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B Required Calculate the NPV of the euro cash flows from the project. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) NPV euro million It is the year 2021 and Pork Barrels, Inc., is considering construction of a new barrel plant in Spain. The forecasted cash flows in millions of euros are as follows: -88 C1 +18 C2 +28 C3 +31 C4 +35 C5 +33 The spot exchange rate is $1.28 = 1. The interest rate in the United States is 7%, and the euro interest rate is 5%. You can assume that pork barrel production is effectively risk-free. a-1. Calculate the NPV of the euro cash flows from the project. a-2. What is the NPV in dollars? b. What are the dollar cash flows from the project if the company hedges against exchange rate changes? c. Suppose that the company expects the euro to depreciate by 5% a year, will this affect the value of the project? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B Required What is the NPV in dollars? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) NPV dollar million It is the year 2021 and Pork Barrels, Inc., is considering construction of a new barrel plant in Spain. The forecasted cash flows in millions of euros are as follows: -88 C1 +18 C2 +28 C3 +31 C4 +35 C5 +33 The spot exchange rate is $1.28 = 1. The interest rate in the United States is 7%, and the euro interest rate is 5%. You can assume that pork barrel production is effectively risk-free. a-1. Calculate the NPV of the euro cash flows from the project. a-2. What is the NPV in dollars? b. What are the dollar cash flows from the project if the company hedges against exchange rate changes? c. Suppose that the company expects the euro to depreciate by 5% a year, will this affect the value of the project? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B Required What are the dollar cash flows from the project if the company hedges against exchange rate changes? (Negative amounts should be indicated by minus sign. Enter your answers in millions. Do not round intermediate calculations. Round "Forward rate" to 3 decimal places and "Cash flow" to 2 decimal places.) Year 0 2 3 Forward rate Cash flow ($ million)

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