A Negative Effective Financing Rate Implies That

A negative effective financing rate implies that:

A) a loss will be incurred on the project financed with the borrowed funds.
B) the borrower paid more interest than would have been paid in the case of domestic currency financing.
C) the borrower will not be able to repay the loan.
D) the gains on the foreign exchange transaction more than offset the cost of borrowing at the foreign rate of interest.