Denim Industries can borrow its needed financing for expansion using one of two foreign lending facilities. It can borrow at a nominal annual interest rate of 12% in Mexican pesos or it can borrow at 2% in Canadian dollars. If the peso is expected to depreciate by 9.89% and the Canadian dollar is expected to appreciate by 6%, which loan has the lower effective annual interest rate? The effective annual interest rate of the loan in Mexican pesos is %. (Round to two decimal places.) The effective annual interest rate of the loan in Canadian dollars is %. (Round to two decimal places.) Which loan has the lower effective annual interest rate? (Select the best answer below.) O A. The loan in Canadian dollars. OB. The loan in Mexican pesos