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McDougan Associates (USA). McDougan Associales, a U.S.-based investment partnership, borrows 685,000,000 at a time when the exchange rate is $1,3335, . The entire principat is
McDougan Associates (USA). McDougan Associales, a U.S.-based investment partnership, borrows 685,000,000 at a time when the exchange rate is $1,3335, . The entire principat is to be repaid in three yean, and interest is 6.950% por annum, paid antually in euros. The euro is expected to desreciate vis. 0 -vis the dollar at 29% per annum. What is the effective cost of this loan for MeDougan? Complete the folicwing table to calcuiate the dolar cont of the euro-denominated dett for years 0 etrough 3 Enter a positive number for a cash infow and negative for a cash oulfow. (Round the amount to the nearest whole number and the exchange rate to four decimal places )
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