McDougan Associates? (U.S.). McDougan? Associates, a? U.S.-based investment? partnership, borrows

euro70,000,000 at a time when the exchange rate is 1.3412?/euro. The entire principal is to be repaid in three? years, and interest is 6.550?% per? annum, paid annually in euros. The euro is expected to depreciate? vis--vis the dollar at 3.1?% 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		70,000,000
Interest payment due in euros				(4,585,000)		(4,585,000)		(4,585,000)
Repayment of principal in year 3								(70,000,000)
Total cash flow of euro-denominated debt		70,000,000		(4,585,000)		(4,585,000)		74,585,000
Expected exchange rate, $/		1.3412		1.2996		1.2593		1.2202
Dollar equivalent of euro-denominated cash flow	$	93,884,000	$	(5,958,666)	$	(5,773,890)	$	(91,016,076)

What is the effective cost of this loan for? McDougan?

nothing?%

?(Round to two decimal? places.)