McDougan Associates, a U.S.-based investment partnership, borrows 75,000,000 at a time when the exchange rate is $1.3366/. The entire principal is to be repaid in three years, and interest is 6.450% perannum, paid annually in euros. The euro is expected to depreciate vis--vis the dollar at 2.6% 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 0 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 0		Year 1		Year 2		Year 3
Proceeds from borrowing euros		75,000,000
Interest payment due in euros
Repayment of principal in year 3								(75,000,000)
Total cash flow of euro-denominated debt
Expected exchange rate, $/		1.3366
Dollar equivalent of euro-denominated cash flow	$		$		$		$