Part 1 of 13 Save O Points: 0 of 3 Raid Gauloises. Raid Gauloises in a rapidly growing French sporting goods and adventure racing outfitter. The company has decided to borrow 22,000,000 via a euro-euro floating rate loan for four years. Raid must decide between two competing loan offers from two of its banks Banque de Paris has offered the four year debt of ouro-LIBOR +2% with an up-front initiation fee of 1.800% Banque de Sorbonne, however, has offered euro-LIBOR + 2,5% a higher spread, but with no loan initiation foes up front, for the same torm and principal. Both banks roset the Interest rate at the end of each year. Euro-LIBOR is currently 3.900%. Raid's economist forecasts that LIBOR will rise by 0.500 percentage points each year. Banque de Sorbonne, however, officially forecasts euro LIBOR to begin tronding upward at the rate of 0.250 percentage points per year. Raid Gauloises's cost of capital is 11%. Which loan proposal do you recommend for Raid Gauloises? For the Banque de Paris loan, the cash flow for Year O is e... (Round to the nearest euro.)