U Question 11 6 pts Zeda, Inc., a U.S. MNC, is considering making a fuced direct investment in Britain. The British government has offered Zeda a three-year loan guarantee of 9,000,000 at a rate of 3% per annum. The normal borrowing rate is 6% in pounds. Interest payments will be made annually, and principal will be repaid at the end of the three years. Assume the current spot exchange rate is $1.50/, and Zeda's WACC (in ) is 10% The yearly interest payments for Zeda over the life of the loan will be: E270.000 At the end of year 3, Zeda will have a cash flow of 29,270,000 including principal and interest. The net present value (in $) of the benefits of the loan guarantee are: $1,082,570