Answer the questions in detail please

Scenario 1. Assume that Zobal International, a US-based multinational company (MNC) needs to borrow $3 million for working capital purposes for one year. Zobal will judiciously invest the proceeds of the loan so that it would generate enough cash flows to pay off the loan. It is considering three funding options to secure the loan and has appealed to you for assistance. Option 1: borrow the amount in the US where the prevailing interest rate is 6%. Option 2: borrow the amount in Japanese yen at an interest rate of 3 percent. Option 3: borrow Canadian dollars where the interest rate is 4 percent. Zobal has forecasted that the Japanese yen will appreciate by percent over the next year while the Canadian dollar will appreciate by 3 percent during the same period. Required: Given the above information, determine the effective financing rate for each option. Which option would you recommend? Why? Why might Zobal or any MNC not necessarily choose the lowest effective financing rate? Scenario 2. Now assume that Zobal still needs the $3 million for working capital purposes for one year. Assume a prevailing one year interest rate of 15 percent while the euro rate is 7 percent. Required: By how much must the euro appreciate to cause the loan in euros to more costly than the dollar denominated loan? (AccKuz Caan u