Recall from the previous chapter that your business is considering expansion within Mexico. Recall that you plan to invest a small amount of U.S. dollar equity into this project and finance the remainder with debt. You can obtain debt financing for the expansion in Mexico, but Mexican interest rates are higher than U.S. rates. Today, you receive credit offers from different banks. You can obtain a fixed rate loan in the United States at 8 percent for the life of this project or a floating rate loan (rate changes each year in response to market interest rates) in Mexico at 10 percent. Explain how you could estimate the net present value (NPV) of the project for each alternative financing method. Include an explanation of how you would account for the uncertainty of future movements of Mexican interest rates.