Question 349 (Mandatory) (5 points) TECMNOTHERM CORPORATION was founded in 1972 by bringing together a skilled professional team established in the field of waste heat recovery. Technotherm just executed a 3 year contract with the State of Germany to deliver (10) Firetube Boilers to a state-owned entify. Each Boiler Technotherm constructs can be buitt in Belgium or Tulsa, OK. The cost of manufacturing is 62,750,000. The terms of the contract specify that Technotherm must accept payment for the Boilers in Euro, which isn't a problem because Technotherm maintains a multi-currency account in London and it holds plenty of 6 . It will take Technotherm 3 years to complete the construction and delivery of the Boilers. Technotherm's CFO looked up the conversion rates of 6/$ for today and in 3 years. The Spot 6/$ rate is 1.05476 and the 3yr Forward is 1.10757. Also, the CFO checked the 30-day and 90-day LIBOP rates, which are 4.22% and 4.73% respectively. Three year SWAP rates are 3.84% for 30 -day LIBOP and 4.83% for 90 day LIBOP. Technotherm must borrow finance the construction of the Boilers. The company has fwo financing options: USBANK: 1. 75% of the cost of manufacturing 2. Interest only per annum, paid in monthly payments 3. Rate Options: a. 30 DAY LIBOR +6% b. 10% FIXED FOR 3 YEARS DEUTCHE BANK: 1. 80% of the cost of manufacturing 2. Interest only per annum, paid in quarterly payments 3. Rate Options: a. 90DAY LIBOR +5% b. 9\% FIXED FOR 3 YEARS As a new graduate of the Meinders School of Business, you report to the CFO and are assigned to use the data above to answer the following question: What is the manufacturing cost of each Boiler and the total project cost in USD-today