ini-Case 1 UMSL Tech has an existing loan of $10.5 million currently outstanding from Missouri Bank. Missouri Bank charges a 5% annual rate of interest on this borrowing. As UMSL Tech is a relatively small, private company, Missouri Bank has agreed to accept management prepared, unaudited financial statements from UMSL Tech every year, to keep the Bank apprised of the company's financial position, results of operations, and cash flow. UMSL Tech has recently been approached by llinois Bank. Illinois Bank has offered to refinance the existing loan at a 4% annual rate of interest if UMSL Tech provides audited financial statements in support of their loan application. UMSL Tech is evaluating this proposal, and has contacted a local CPA firm. The CPA firm has offered to be engaged to perform and audit, which they estimate will cost UMSL Tech about $35,000 Required 1. Conduct a brief and to-the-point analysis, and indicate whether UMSL Tech should pursue the offer by Illinois Bank. 2. Why is inois Bank willing to offer a lower interest rate on this loan than Missouri Bank? 3. Aside from the issue of the loan, why else might UMSL Tech desire to undergo an audit