Suppose that a gold mining firm needs to raise $ 80 million in cash to finance the development of a new mine. A bank offers the firm a choice between borrowing cash at 5% per annum and borrowing gold at 2% per annum. If gold is borrowed, interest must be repaid in gold. Thus, one ounce borrowed today would require e T ounces, where is the lease rate. Assume that there is no storage cost and no income is earned on gold. Because this gold loan does not lock in the price of gold in one year, you buy an appropriate number of gold forward contracts. The current price of a one-year forward contract on one ounce of gold is $128. The spot price of gold is currently $125. Which option is cheaper and how much does the company save?