Question 4 (10 marks) Daisy and Donald just got married and they decide to buy an apartment at SOHO central costing $8,000,000. They can afford to make a 40% down payment and will finance the balance with a 15- year fixed-rate mortgage. The bank charges 4.8%, compounded monthly on their mortgage loan. (a) What is her month-end mortgage payment? (4 marks) (b) What is the size of the interest repayment in the 61st loan repayment? (6 marks) 1. (6 marks) Tenet Oil Production (TOP) is the largest producer of offshore crude oil and natural gas in Country X. With the aging of her existing oil fields, the company is considering a proposal of developing an oil well located in the Atlantic Ocean acquired 2 year ago TOP is considering whether to develop the Atlantic Ocean oil well next year. Some relevant financial figures of this proposal are as follows: . The $800 million of initial acquisition cost of the oil well paid 2 years ago A total of $50 million budgeted for installing oil drilling equipment if the management team decides to develop the oil well a. Explain whether the above two items should be counted as the opportunity cost of developing the oil well in the Atlantic Ocean. (4 marks) b. Facing the criticism on the potential pollution caused by offshore oil rigs, TOP has announced that they are going to donate $10 million to WWF, no matter they are going to develop the new oil well in the Atlantic Ocean or not. Will this affect the opportunity cost of developing the oil well? Explain your (2 marks)