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Suppose you are the chief financial officer of a manufacturing company. The company is planning a $1 billion plant expansion and will finance it by

Suppose you are the chief financial officer of a manufacturing company. The company is planning a $1 billion plant expansion and will finance it by borrowing money for five years. Three financial institutions have submitted interest rate quotes; all are APRs:

Lender A: 10.40 percent compound monthly

Lender B: 10.90 percent compounded annually

Lender C: 10.50 percent compounded quarterly

Which is the cheapest loan option for the company?

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