5.a) Microsoft, whose global sales are generally dollar denominated, finds it has excesscash of $750,000,000, which it can invest for up to three years. It has determined that itsbest options are either a three-year Euro-dollar ($) deposit paying 4.5% or a three-yearEuro denominated deposit paying 5.5% since it expects the Euro to depreciate 1% perannum against the dollar over the next three years. Using cash flow analysis, determine inwhich currency Microsoft should invest. Be sure to show your complete calculations ofthe annual return and conversion of Euro back to dollars at the end of the three-year term.Assume that the annual interest amount is reinvested, i.e. compounds, at the same annualinterest rates. Would your answer change if Microsoft revised its outlook for the Euro todepreciate 1.25% per year?b) British Oxygen whose global sales are generally dollar denominated needs to borrow$50,000,000 for working capital and intends using a 5-year multi-currency revolvingcredit. It can borrow in US$ at 8.5% p.a. or in SFr at 5.5% p.a. However, it expects theSFr to appreciate on average 4% p.a. over the next five years. Using a cash-flow analysisdetermine in which currency BOC should borrow. Would your answer change if BOCcould issue SFr commercial paper supported by the revolving credit at 3.5%?