Homework: Chapter 14 Homework Save Score: 0 of 1 pt 2 of 5 (1 complete) HW Score: 20%, 1 of 5 pts Problem 14-3 (algorithmic) Question Help McDougan Associates (USA). McDougan Associates, a U.S.-based investment partnership, borrows 85,000,000 at a time when the exchange rate is $1.3358/. The entire principal is to be repaid in three years, and interest is 6.950% per annum, paid annually in euron. The euro is expected to deprecato vis--vis the dollar at 3.5% per annum. What is the effective cost of this loan for McDougan? Complete the following table to calculate the dollar cost of the euro denominated debt for years through 3. Enter a positive number for a cash inflow and negative for a cash outflow. (Round the amount to the nearest whole number and the exchange rate to four decimal places) Year 1 Year 2 Year 3 Procends from borrowing euros 85,000,000 Interest payment due in euros Jel (85,000,000) Repayment of principal in your 3 Total cash flow of euro denominated dobl Year 0 1.3358 Expected exchange rato, se $ $ Dotar equivalent of euro denominated cash flow Enter any number in the edit fields and then click Check Answer Check Answer Clear All tus 1 Part remaining