Question A - Jose's Luxury Camping will provide multi-day hiking and camping tours in Strathcona Park on Vancouver Island from May 1" until September 30th each year. From December 1" until March 31" Jose will operate a similar business except instead of hiking, the customers will be traveling by snowshoes through Strathcona Park., since the altitude is high and there will be lots of snow. The business will be closed for October, November and April as those months tend to have rainy weather that is not warm. The tour company will provide luxury camping at pre-arranged spots that will be set up each day as the customers hike or snowshoe from the previous night's spot. In winter the portable huts are heated. That allows the customers to enjoy their days without carrying any equipment other than snacks and beverages each day. The start-up costs, for the luxury camping equipment ($15,000) and a vehicle ($50,000) to take the customers to the starting point, as well as operating costs for some marketing ($5,000) and wages while he trains his staff ($10,000). With some misc expenses and to have a bit of a cushion to start, he has determined he needs $90,000. Jose has $10,000 in savings and will need some type of funding, Jose has planned his business based on a similar business that operates in another region of Canada. He is confident his business will earn $20,000 in profits the first year after all expenses, including his salary, are paid. Based on the kind of business he is planning and the items he needs to spend money on to start the business, answer the following questions: a. (4 marks) Explain two advantages and two disadvantages of using debt financing for this specific business. b. (4 marks) Explain two advantages and two disadvantages of using equity funding for this specific business. c. (2 marks) Do you recommend Jose pursue debt or equity financing for this specific business. Explain why