Euromarket investment and fund raising A U.S.-based multinational company has two subsidiaries, one in Mexico (local currency, Mexican peso, MP) and one in Japan (local currency, yen, W). Forecasts of business operations indicate the following short-term financing position for each subsidiary in equivalent U.S. dollars): Mexico: $80 million excess cash to be invested (lent) Japan: $60 million funds to be raised (borrowed) The management gathered the following data: E . Determine the effective interest rates for all three currencies in both the Euromarket and the domestic market, then indicate where the funds should be invested and raised. (Note: Assume that because of local regulations, a subsidiary is not permitted to use the domestic market of any other subsidiary.) The effective interest rate in the Euromarket for the US$ is 4%Round to two decimal places The effective interest rate in the Euromarket for the MP is/ % 0 Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) USS Currency MP MP11.60/US$ - 3.00% 108.25/US$ +1.50% Item Spot exchange rates Forecast percentage change Interest rates Nominal Euromarket Domestic Effective Euromarket Domestic 6.20% 4.00% 3.75% 5.90% 2.00% 2.15% Enter your answer in the answer box and then click Check A parts remaining