QUESTION 1 (13 marks) Vanua Manufacturing Company Limited is considering taking $5,000,000 loan from commercial bank for its approved new capital budget project. The financial accountant has short listed three best offers from Bank P, W and Z. Bank P: 8 annual equal instalments beginning from the first year end onwards at an interest rate of 10.00% p.a. together with additional repayment (end) of $250,000 Year 5, $300,000 Year 6, $350,000 Year 7 and $400,000 Year 8. Bank W: 9 annual equal instalments beginning from the first year end onwards at an interest rate of 9.00% p.a. together with additional repayment (end) of $200,000 Year 2, $350,000 Year 4, $400,000 Year 6 and $500,000 Year 8. Bank Z: 10 annual equal instalments beginning from the first year end onwards at an interest rate of 9.00% p.a. together with additional repayment (end) of $150,000 Year 3, $280,000 Year 5, $450,000 Year 7 and $475,000 Year 8. Required (a) Evaluate the three offers and advice the financial accountant from which bank should the company consider taking loan (support your answer with necessary calculations). Note: You need to demonstrate the amount of interest payable under for Bank P, W and Z.