Maple Corporation is a US company and is considering borrowing 10000000 from a syndicate of British Banks to make improvements to its manufacturing plant in the US. The current exchange rate is $1.55/ and the interest rate on this loan is 7.00% per year. The loan will need to be repaid at the end of two years.a) Suppose that the British pound is expected to appreciate against the dollar at 4% per annum. Compute the effective cost of the loan (i.e. the effective interest rate in USD). b) Consider an alternative scenario. Suppose that the pound is expected to depreciate against the dollar at 1.5% per annum. Compute the effective cost of the loan (i.e. the effective interest rate in USD).c) Consider yet another scenario. Suppose that the expected annual inflation is 3% in the US and 0.5% in the UK. Suppose that the pound-dollar exchange rate movement is in accordance with relative purchasing power parity. Compute the effective cost of the loan (i.e. the effective interest rate in USD).