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Fairmont Company, based in the US, has $3 million in excess cash that it has invested in Brazil at an annual interest rate of 25

Fairmont Company, based in the US, has $3 million in excess cash that it has invested in Brazil at an annual interest rate of 25 percent. The U.S. interest rate is 6 percent. By how much would the Brazilian real have to depreciate to cause such a strategy to backfire?

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