Mr. Ram Singh is a 40-year-old engineer operating his own business with the help of three staff members and his wife. The business was incorporated ten years ago and operations commenced soon after. Mr. Singh receives a salary of $30,000/month and his wife receives $15,000/month. The business is actively managed by Mr. Singh and in his absence; his wife takes full control of all operations. Mr. Singh states that the business is profitable with total revenue averaging $1.5 million/year and expenses $1million/year. The business is expanding and Mr. Singh is interested in purchasing the adjacent land to expand his workshop to facilitate the growth. The cost of the land is $1.5 million and the cost of the building including equipment is an additional $3 million. Both, revenues and expenses are expected to increase by 25%/year. The business and Mr. Singh have their accounts with your bank with credit balances of $1.2 million and $700,000 respectively. Your bank has extended loans to Mr. Singh and his business in the past with satisfactory repayment history. Mr. Singh approached your bank for a long-term loan of $3.5 million for the purchase of land, equipment and construction of a building. A Are you satisfied with Mr. Singh character with respect to the credit request? Justify. (2 marks) B Calculate the monthly installment assuming 9% loan over ten years. (2 marks) C Identify two risks with this facility and recommend one strategy to mitigate each risk. (4 marks) D Would you recommend the loan? Give two reasons to support your recommendation. (4 marks)