Mr & Mrs Smith, the owners of Hobart Yachts Ltd, have decided that it is time to acquire a manufacturing facility with an initial cost shown in row 8. They are now ready to meet with Christie, the loan officer from Westpac. Christie begins the meeting by discussing a thirty-year mortgage. The loan would be repaid in equal monthly instalments. There would be no establishment costs for the loan. The annual interest rate of the thirty-year mortgage is 10. Christie says that the bank also offers an interest-only loan with a term of ten years and the annual interest rate is 5. The company would be responsible for making interest payments each month. At the end of the ten-year term, the company would repay the principal. Mr & Mrs Smith are unsure of which loan they should choose, and they have asked you to answer the following questions: a) What are the monthly payments for the thirty-year mortgage? b) What are the monthly payments for the interest-only loan? c) Which option you would recommend to Mr & Mrs Smith, and are there any potential risks if the company takes this option?