Homework: Mylab Chapter 14 Assignment Question 2, Problem 14-3 (algorithmic) Part 2 of 2 HW Score: 78.67%, 3.93 of 5 points Points: 0.93 of 1 Save McDougan Associates (USA). McDougan Associates, a U.S.-based investment partnership, borrows €75,000,000 at a time when the exchange rate is $1.3324/€. The entire principal is to be repaid in three years, and interest is 6.150% per annum, paid annually in euros. The euro is expected to depreciate vis-à-vis the dollar at 2.9% per annum. What is the effective cost of this loan for McDougan? C Complete the following table to calculate the dollar cost of the euro-denominated debt for years 0 through 3. Enter a positive number for a cash inflow and negative for a cash outflow. (Round the amount to the nearest whole number and the exchange rate to four decimal places.) Year 1 Year 2 Year 3 Proceeds from borrowing euros € Year 0 75,000,000 € Interest payment due in euros (4,612,500) € (4,612,500) € (4,612,500) Repayment of principal in year 3 (75,000,000) Total cash flow of euro-denominated debt € 75,000,000 € (4,612,500) € (4,612,500) € 79,612,500 1.3324 1.2938 1.2563 Expected exchange rate, $/€ 1.2199 $ 99,930,000 $ (5,967,653) $ (5,794,684) S (97,119,289) Dollar equivalent of euro-denominated cash flow What is the effective cost of this loan for McDougan? % (Round to two decimal places.)