1. Indian Motorcycles (A). Indian Motorcycles exports large-engine motorcycles (greater than 700cc) to Australia and invoices its customers in U.S. dollars. Sydney Wholesale Imports has purchased $3,000,000 of merchandise from Indian Motorcycles, with payment due in six months. The payment will be made with a bankers' acceptance issued by Charter Bank of Sydney at a fee of 1.75% per annum. Indian Motorcycles has a weighted average cost of capital of 10%. If Indian holds this acceptance to maturity, what is its annualized percentage all-in-cost?