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Dunder Corporation has an existing loan in the amount of $10 million with an annual interest rate of 6.1%. The company provides an intemal

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Dunder Corporation has an existing loan in the amount of $10 million with an annual interest rate of 6.1%. The company provides an intemal company-prepared financial statement to the bank under the loan agreement. Two competing banks have offered to replace Dunder Corporation's existing loan agreement with a new one. More Money Bank has offered to loan Dunder $10 million at a rate of 5.1% but requires Dunder to provide financial statements that have been reviewed by a CPA firm. Green Back Bank has offered to loan Dunder $10 million at a rate of 4.3% but requires Dunder to provide financial statements that have been audited by a CPA firm. Dunder Corporation's controller approached a CPA firm and was given an estimated cost of $28,000 to perform a review and $68,000 to perform an audit. Read the requirements. (Enter amounts in dollars, not millions, throughout.) ceover Existing loan (No CPA service) More Money Bank (CPA Review service) Green Back Bank (CPA Audit service) services Annual interest GOST S 0 $ 610,000 $ 610,000 $ 28,000 $ 510,000 $ $ 68,000 $ 430,000 $ 538,000 498.000 Indicate whether Dunder should keep its existing loan, accept the offer from More Money Bank, or accept the offer from Green Back Bank Based on the analysis in the preceding step, Dunder should accept the offer from Green Back Bark Requirement c. Assume that More Money Bank has offered the loan at a rate of 5.1% with a review, and the cost of the audit has increased to $148,000 due to new auditing standards requirements. Indicate whether Dunder should keep its existing loan, accept the offer from More Money Bank, or accept the offer from Green Back Bank Begin by calculating the annual costs under each loan agreement. (Complete all input fields. Enter a " for any zero balances.) Lender Existing loan (No CPA service) More Money Bank (CPA Review service) Green Back Bank (CPA Audit service) Cost of CPA Services Annual Interest Annual Loan Cost Enter any number in the edit fields and then click Check Answer

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