As a director , you must evaluate the loan options and present your recommendations to the company management. Draw up wn amortization schedule for each of the three loan offers, using excel.

1. Introduction Kopano Ke Matia Construction is a medium sized company. The company was founded in 2009 with an initial loan of R2,500,000 and a staff compliment of 5. The company now also wants to expand aggressively into the field of road construction. 2. Project/Acquisition evaluations 2.1 Part 1: Purchase of a building The acquisition of construction plant will require the purchase of a new building for temporary storage of plant, as well as maintenance of plant. The purchase will be funded through a loan. Loan details are as follows. Cost of the building: R2,780,000 Deposit required by the banks: 15% Loan term: 20 years Frequency of repayments: monthly Payment start date (estimated): 01/08/2022 Rate offers from various banks have been received as follows: ADSA Bank Interest rate: 8,75% for the 1* 4 years, 9,25% for the following 6 years and 7,6% for the remainder of the loan term. Nettbank Interest rate: 9,25% fixed for the full loan term. Capsotek Interest rate: 10,75% for the 1st 4 years, then 10,5% for another 4 years and then 7,5% for the remaining loan term