LULUH WON LAUAN WEUSIC TOI an uala. Question 3. Alternative Project Financing (22.5 points) A firm is intending to expand its production capacity. The project cost $5,000,000. The firm may raise the capital in one of the following financing schemes and to be paid over 10 year period: - Financing the project through a bank loan (annuity) with an annual profit rate of 5.5% - Issuing Sukuk with a profit rate of 3.5%. Determine the cheapest option for the company to raise the funds. LULUH WON LAUAN WEUSIC TOI an uala. Question 3. Alternative Project Financing (22.5 points) A firm is intending to expand its production capacity. The project cost $5,000,000. The firm may raise the capital in one of the following financing schemes and to be paid over 10 year period: - Financing the project through a bank loan (annuity) with an annual profit rate of 5.5% - Issuing Sukuk with a profit rate of 3.5%. Determine the cheapest option for the company to raise the funds