4. Toyota, whose global sales are generally dollar denominated, finds it has excess cash of

$85,000,000,000, which it can invest for up to three years. It has determined that its best options

are either a three-year Euro-dollar ($) deposit paying 2.65% or a three-year Yen denominated

deposit paying 1.55% since it expects the Yen to appreciate 1.2% per annum against the dollar

over the next three years. Using cash flow analysis determine the best currency option in which

Toyota should invest. Be sure to show your complete calculations of the annual return on each

investment possibility at the end of the three-year term. Assume that the annual interest amount is

reinvested, i.e. compounds, at the same annual interest rate. Would your answer change if Toyota

revised its outlook for the Yen to appreciate 1.1% per year? Show all calculations!!