$8.$ The CFO of Vaimato Industries needs to borrow money $($a one$-$year loan$)$ in the coming months to support the start up of a new project. The interest rate in the U$.$S$.$ for a dollar loan was quoted as $14$ percent $($before taxes$).$ A euro loan is also available at an interest rate of $8\mathrm{.}60$ percent. In both cases the marginal tax rate is $40$ percent. The spot exchange rate $($American terms$)$ is $$1\mathrm{.}2135/$ and the one$-$year forward rate is $$1\mathrm{.}2500/.$ What is the after$-$tax cost of debt for the cheapest source of funds?

a$.14\mathrm{.}00\%$

b$.13\mathrm{.}87\%$

c$.10\mathrm{.}55\%$

d$.8\mathrm{.}40\%$

e$.8\mathrm{.}32\%$