Tropikana Inc., a U.S. firm, has just borrowed 1,000,000 to make improvements to an Italian fruit plantation and processing plant. If the Euro interest rate is 5.50% per year and the Euro appreciates against the dollar from $1/ at the time the loan was made to $1.05/ at the end of the first year, what is the (before tax) dollar cost of loan if the firm repays the entire loan plus interest (rounded)? 5.00% 5.50% 9.50% 10.78%