1. Fort Collins, Inc., has $1 million in cash available for 30 days. It can earn 1 percent on a 30-day investment in the United States. Alternatively, if it converts the dollar to Mexican pesos, it can earn 1.5 percent on a Mexican deposit. The sport rate of the Mexican peso is

$0.12. The spot rate 30 days from now is expected to be $0.10. Further assume that Collins face a corporate tax rate of 34 percent and a capital gain tax rate of 10 percent. Should Collins invest its cash in the United States or in Mexico? Show your calculations.