McDougan Associates (USA). McDougan Associates, a U.S.-based investment partnership, borrows 90,000,000 at a time when the exchange rate is $1.3461/. The entire principal is to be repaid in three years, and interest is 6.850% per annum, paid annually in euros. The euro is expected to depreciate vis--vis the dollar at 2.7% 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 90,000,000 Interest payment due in euros Repayment of principal in year 3 (90,000,000) Total cash flow of euro-denominated debt D D 1.3461 C s D O O Expected exchange rate, $/ 1.3461 E D D $ D Dollar equivalent of euro-denominated cash flows D s C