An earthworks contractor needs to determine whether to buy a new excavator for cash or to take out a loan for the excavator. The contract has the money available for the purchase. The money is invested in a savings fund that earns the contractor a 5% APR. Perform calculations and recommend the best option to the contractor. Show all your calculation steps. Cost of the excavator = R750,000. The manufacturer offers a 5% discount for cash purchases. APR for the loan option = 14% and the loan term is 48 months.