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McDougan Associates ( USA ) . McDougan Associates, a U . S . - based investment partnership, borrows 7 5 , 0 0 0 ,
McDougan Associates USA McDougan Associates, a USbased investment partnership, borrows at a time when the exchange rate is $ The entire principal is to be repaid in three years, and interest is per annum, paid annually in euros. The euro is expected to depreciate visvis the dollar at per annum. What is the effective cost of this loan for McDougan?
Complete the following table to calculate the dollar cost of the eurodenominated debt for years through 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.
tableYear Year Year Year Proceeds from borrowing euros,Interest payment due in euros,,,Repayment of principal in year
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