Dynamic Corporation has an existing loan in the amount of $5 million with an annual interest rate of 5.9%. The company provides an internal company prepared financial statement to the bank under the loan agreement. Two competing banks have offered to replace Dynamic Corporations existing loan agreement with a new one. Money Tree Bank has offered to loan Dynamic $5 million at a rate of 4.3% but requires Dynamic to provide financial statements that have been reviewed by a CPA firm. Credit One Bank has offered to loan Dynamic $5 million at a rate of 3.5% but required Dynamic to provide financial statements that have been audited by a CPA firm. Dynamic Corporations controller approached a CPA firm and was given an estimated cost of $28,000 to perform a review and $40,000 to perform an audit.

Requirement b. Calculate Dynamic Corporation's annual costs under each loan agreement, including interest and costs for the CPA firm's services. Indicate whether Dynamic should keep its existing loan, accept the offer from Money Tree Bank, or accept the offer from Credit One Bank. Begin by calculating the annual costs under each loan agreement Requirement b. Calculate Dynamic Corporation's annual costs under each loan agreement, including interest and costs for the CPA firm's services. Indicate whether Dynamic should keep its existing loan, accept the offer from Money Tree Bank, or accept the offer from Credit One Bank. Begin by calculating the annual costs under each loan agreement (Please show your work)