Danzee is a public service organization which operates from a single location. It does not pay tax on its surplus cash flows. Heating system Danzee wishes update its heating system as the current one has become unreliable, The cost of the heating system is P 115 000 and will be depreciated over a5 year useful life on a straight line basis with a zero residual value. The new heating system will make a significant savings in heating bills and annual maintenance. Financing Danzee is considering several possible sources of finance to pay for the new heating system. Option 1 - to borrow P 100000 for 5 years at an interest rate of 2.5% per year. In 5 years the debt will be repaid with a final payment of payment of P 125000.00 Option 2 - to issue undated (irredeemable) debentures to a merchant bank in order to raise P 115 000. The debenture will have a nominal value of P 125000 at an interest rate 9% but will be denominated n US dollars. Required Identify three factors to consider before deciding which source of finance should be used specifically to finance the purchase of the heating system in the context described above. Explain why each factor is important in this scenario