5-a ( 5 pts.) Watax Inc., a mining outfit in Phoenix intends to engage in mining operations in South Africa after conducting a comprehensive feasibility of the referenced country. Assume that the prevailing interest rate in South Africa is 9 percent. To meet its working capital needs, Watax will borrow South African rands, convert them to US dollars and repay the loan in one year. What will be Watax's effective financing rate if the rand depreciates by 6 percent or appreciates by 3 percent. Discuss your results. 5-b (5 pts.) Given the information in Problem 5-a and assuming a 50 percent probability that either scenario would occur, determine and discuss the expected value of the effective financing rate. 5-c (5 pts.) Assume that the one year prevailing interest rate in Mexico is 5 percent while that in the US is 8 percent. What percentage change in the peso would cause a US firm borrowing peso to incur the same effective financing rate as it would if it borrowed dollars? Discuss your results