Kurnick Company expects that the pound will depreciate from $1.70 to $1.68 in one year. it has no money to invest, but it could borrow money to invest.It has been approved by a bank to borrow either 1 million dollars or 1 million pounds for one year. It can borrow dollars at 6% or British pounds at 5% for one year. It can invest in a risk-free dollar deposit at 5% for one year or a risk-free British deposit at 4% for one year. Determine the expected profit or loss (in dollars) if Kurnick Company pursues a strategy to capitalize on the expected depreciation of the pound. HINT: Follow these steps: 1. Borrow 1 million pounds and convert to dollars: 2. Total dollar amount at the end of year 1 is: 3. Total owed on pounds borrowed is: 4. Total amount of dollars needed to pay the loan is: 5. Profit or loss is