Crown Ltd. has decided to borrow $50,000,000 via a euro-dollar floating rate loan for 4 years. It must decide between two competing loan offerings from two banks: Century bank has offered the four-years loan at LIBOR+1.5% with an up-front initiation fee of 1%. Liberty bank however, has offered LIBOR+3%, but with no initiation fees up-front, for the same term and principal. Both banks reset the variable rates at the end of each year. LIBOR is currently 5% and Crown's financial advisory forecasts that LIBOR will rise by 0.5% per year. Crown's cost of capital(WACC) is 8.5%. The forecasted cash flows for both loan offers are as follow: Bank Year o Year 1 Year 2 Year 3 Year 4 Century $49,500,000 ($3,500,000) ($3,750,000) ($4,000,000) ($54,250,000) Liberty $50,000,000 ($4,250,000) ($4,500,000) (4,750,000) ($55,000,000) Which loan proposal do you recommend for Crown Ltd. (Liberty or Century)? Which loan proposal do you NOT recommend for Crown Ltd. (Liberty or Century)? because : Liberty's 4 and Century's