Suppose that Bosa Co., a U.S.-based MNC, has been offered a project by the government of Brazil. The project lasts for a period of one year and would require a 1,000,000 Brazilian real (R) investment in the project immediately. The spot rate of the real is currently $0.30, however Bosa forecasts that the real will depreciate to $0.20 by next year.

In order to pay for the initial investment, Bosa would need to borrow dollars at an interest rate of 15.00%. The project is expected to generate cash flows of R1,400,000.

Suppose that Bosa and the Brazilian government decide to engage in a parallel loan, in which each party simultaneously loans the other party a certain amount to be repaid at a specific time in the future. Suppose that Bosa will loan the Brazilian government $300,000, which will be repaid with interest in one year at a rate of 10.00%. The government of Brazil will loan Bosa R1,000,000, which will be repaid with interest in one year at a rate of 15.00%.

The following table summarizes Bosas dollar cash flows from the parallel loan.

	Bosa Dollar Cash Flows
	Year 0	Year 1
Loan to Brazilian Government	$300,000
Interest Payment		$45,000
Interest Received on Loan of $300,000		30,000
Repayment of Loan Principal		$300,000
Net Cash Flow	$300,000	$285,000

The following table summarizes Bosas real cash flows from the parallel loan.

	Year 0	Year 1
Loan from Brazilian Government	R1,000,000
Investment in Project	R1,000,000
Interest Paid on Loan of R1,000,000		R150,000
Repayment of Loan Principal		R1,000,000
Project Cash Flow		R1,400,000
Net Cash Flow	0	R250,000

Ignoring the time value of money, the total dollar cash flows when using parallel loans is projected to be $._________