please help in this question in few minutes, its due in one hour

it would be really gratefull

You ate a consultant for Manfred Systems incorporated, which manufactures equipment for small print shops. The CFO recently met to discuss refinancing purchase additional manufacturing equipment to meet consumer demand and streamline production, increasing efficiency and removing bottlenecks in the production process. Enancingdatalls: Debt to refinance =$10,000,000 Option 1: Reborrow the money from the Business Development Bank of Canada on a five-year basis with a flat rate of 8%. The loan balance would be due in five years, but the company must make annual interest payments to the bank: Option 2. Borrow the money from RBC bank using shont-term one-year loans, the first year would be at an interest rate of 6% per annum. If the company maintains a compensating balance of 10% of the loan, the interest rate will get lowered to 5.5% per annum (reduced by 0.5% ). The CFO is interested in the potential advantages of short term borrowing to sive on interest costs. Required: a. How much would the company need to borrow to acquire the funds required at 5.552 Note: the company would also need to borrow to cover the : compensating balance requtrement, Q marks) b. Compare the cost of the one-year short-term loan if the company decides to bonow the funds at 6% or wants to borrow and leverage the rate of 5.58 if the compensating balance is covered. Which is less expensive? (5 marks) c. Compare the total costs of the long term iosn from the Businens Developenent Bank of Canada with the short ferin finanicing option it the following tates are available: b. Compare the cost of the one year short-term loan if the company decides to borrow the funds at 6% or wants to borrow and leverage the rate of 5.5% if the compensating balance is covered. Which is less expensive? ( 5 marks) c. Compare the total costs of the long teim loan from the Business Development Bank of Canada with the shortterm financing option if the following rates ate avallables Year 1:6\% Year 2.8\% Year 3:9% Year 4:9% Year 5:4% Distegard the compensating balance requirement for this question. Which alternative would be best for the company? (6 marks) d. What are the advantages and disadvantages of shortterm vs long term financing? Are any other alternatives avaliable to the company? If you were the CFO of the company. would you adopt a highet risk/reward financing policy or a more conservative financing pollicy? Explain in detall (at least 300 words)