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MrcUougar Associates (USA). McDougan Associates, a U.S, based investment partnership, bortows 75,000,000 at a time when the exchange rate is S1.338.tif Tho entire principal is

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MrcUougar Associates (USA). McDougan Associates, a U.S, based investment partnership, bortows 75,000,000 at a time when the exchange rate is S1.338.tif Tho 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-al.vis the dollar at 2.9\% per annum. What is the ellective 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 arnount to the nearest whole nurnter and the exchange rate to four docimal places:) Expected exchange rate, $/ 1.3384 Dollar equivalent of euro-denominated cash flow \$ s $ $

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