Raid Gauloises. Raid Gauloises is a rapidly growing French sporting goods and adventure racing outfitter. The company has decided to borrow 21,000,000 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 at euro-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 fees up-front, for the same term and principal. Both banks reset the interest rate at the end of each year. Euro-LIBOR is currently 3.800%. 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 trending 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?

1.For the Banque de Paris loan, the cash flow for Year 0 is euro . (Round to the nearest euro.)

2.For the Banque de Paris loan, the cash flow for Year 1 is euro . (Round to the nearest euro.)

3.For the Banque de Paris loan, the cash flow for Year 2 is euro . (Round to the nearest euro.)

4.For the Banque de Paris loan, the cash flow for Year 3 is euro . (Round to the nearest euro.)

5.For the Banque de Paris loan, the cash flow for Year 4 is euro . (Round to the nearest euro.)

6.For the Banque de Paris loan, the all-in-cost of funds if LIBOR rises by 0.5000.500 percentage points each year is %. (Round to four decimal places.)

7.For the Banque de Sorbonne loan, the cash flow for Year 0 is euro . (Round to the nearest euro.)

8.For the Banque de Sorbonne loan, the cash flow for Year 1 is euro . (Round to the nearest euro.)

9.For the Banque de Sorbonne loan, the cash flow for Year 2 is euro . (Round to the nearest euro.)

10.For the Banque de Sorbonne loan, the cash flow for Year 3 is euro . (Round to the nearest euro.)

11.For the Banque de Sorbonne loan, the cash flow for Year 4 is euro . (Round to the nearest euro.)

12.For the Banque de Sorbonne loan, the all-in-cost of funds if LIBOR rises by 0.250 percentage points each year is %. (Round to four decimal places.)