McDougan Associates (USA). McDougan Associates, a U.S.-based investment partnership, borrows 80,000,000 at a time when the exchange rate is $13408/. The entire principal is to be repaid in three years, and interest is 6.350% per annum paid annually in euros. The euro is expected to depreciate vis--vis the dollar at 3% 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 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 o Year 1 Year 2 Year 3 Proceeds from borrowing euros 80,000,000 Interest payment due in euros (5,000,000), (5,000,000) (5,080,000) Repayment of principal in year 3 (80,000,000) Total cash flow of euro-denominated debt 80,000,000 (5.080,000) (5,000,000) 65,000,000 Expected exchange rate, se 1.3408 1.3006 12616 12237 Dollar equivalent of euro-denominated cash now $ 107,264,000$ (6,606,926) $ (6,400.718) S (104,113 413) What is the effective cost of this loan for McDougan? % (Round to two decimal places)