Roo-Fus Inc. wants to finance its international expansion by obtaining financing in the Euromarkets. ANZ and Westpac each offer a $100 million, three-year Eurodollar loan with the following characteristics:

What are the present values of each loan, and which should Roo-Fus choose? Assume Roo-Fus has a 10% discount rate and debt payments are made on an annual basis.

Select one:

a. The NPV of ANZ's loan is 3.4969 million, the NPV of Westpac's loan is 4.3911 million; Roo-Fus should choose ANZ.

b. The NPV of ANZ's loan is 3.4969 million, the NPV of Westpac's loan is 4.3911 million; Roo-Fus should choose Westpac.

c. The NPV of ANZ's loan is 3.5217 million, the NPV of Westpac's loan is 2.8244 million; Roo-Fus should choose ANZ.

d. The NPV of ANZ's loan is 3.5217 million, the NPV of Westpac's loan is 2.8244 million; Roo-Fus should choose Westpac.

e. The NPV of ANZ's loan is 3.9510 million, the NPV of Westpac's loan is 5.0085 million; Roo-Fus should choose ANZ.

f. The NPV of ANZ's loan is 3.9510 million, the NPV of Westpac's loan is 5.0085 million; Roo-Fus should choose Westpac..

Fee Interest Westpac 0.81% 1.44% ANZ 1.01% 1% Fee Interest Westpac 0.81% 1.44% ANZ 1.01% 1%