1. ( Refinance Decision) Amount Terms Cost of Refinancing Original Loan $120,000 5%, 30 New Loan ______ 3%,__ $3,500 The original loan has been outstanding for 3 years. The owner plans to retain ownership of the property for another 8 years. The opportunity cost is 9%. Should the loan be refinanced? Remember to answer this question using Present Value (PV) Analysis.