Manzetti Foods, a U.S. food processing and distribution company, is considering an investment in Germany. You are in Manzetti's corporate finance department and are responsible for deciding whether toundertake the project. The expected free cash flows, in euros, are uncorrelated to the spot exchange rate and are shown here:YearFree Cash Flow (€ million)0- 16.31729311412The new project has similar dollar risk to Manzetti's other projects. The company knows that its overall dollar WACC is 11.38%, so it feels comfortable using this WACC for the project. The risk-free interest rate ondollars is 5.21% and the risk-free interest rate on euros is 4.63%.a. Manzetti Foods is willing to assume that capital markets in the United States and the European Union are internationally integrated. What is the company's euro WACC?b. What is the present value the project in euros?Ca. Manzetti Foods is willing to assume that capital markets in the United States and the European Union are internationally integrated. What is the company's euro WACC?The company's euro WACC is %. (Round to three decimal places.)

The question is asking for Manzetti Foods' euro WACC, which is the weighted average cost of capital…

Answered: Manzetti Foods, a U.S. food processing…

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