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Suppose that Bosa Co. a U.S.-based MNC, has been offered a project by the government...

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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 requine 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 inibal investment, Bosa would need to borrowe dollarr at an interest rate of 15.00\%. The project is expected to generate cash flowe of R1,400,000. Suppose that: Bcra and the Brazilian oovertment decide to engage in a parallel loan, in which each party simultaneously loans the other party a certain ameunt bo be repaid at a specilic time in the fuhare, Suppese that Bosa will loan the Brazilian govermment \$300,000, which will be repaid with interest in one yeat at a rate of 10,00\%4. The govermment of Brazil will loan Bosa R1,000,000, which will be repaid with intereat in one year at a rate of 15,009+ Complote the second column of the bible, flling in the intereat nocaved from the doildar foan and the nec dollar cash flowe for Bosa in bear t of the project

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