The store owner has asked you to develop a decision support tool (e.g., a spreadsheet) that allows the store to compare these four loan options under various interest rates and minimum attractive rate of return (MARR) for the store. In addition to the tool, they expect your report to include the following information: a) Vary both rates from 5% to 20% in 1% increments and compute the present worth for each loan option under each scenario. b) What is the most economical loan option if the borrowers MARR is greater than the lenders interest rate? c) What is the most economical loan option if the borrowers MARR is equal to the lenders interest rate? 

d) What is the most economical loan option if the borrowers MARR is less than the lenders interest rate? e) Clearly explain the reason behind your findings for the three cases in parts (b)-(d).

	OPTION 1	OPTION 2	OPTION 3	OPTION 4
Interest payment Principal repayment Equal end of year installment	1569.6 0	1569.6 2092.8	3121.5
CASH FLOW	8894.4	6801.6	7342.5	10464
BEGINNING OF YEAR 2
Interest payment	1569.6	1255.68
Principal repayment	0	2092.8
Equal end of year installment			3121.5
CASH FLOW	1569.6	3348.48	3121.5	0
BEGINNING OF YEAR 3
Interest payment	1569.6	941.76
Principal repayment	0	2092.8
Equal end of year installment			3121.5
CASH FLOW	1569.6	3034.56	3121.5	0
BEGINNING OF YEAR 4
Interest payment	1569.6	627.84
Principal repayment	0	2092.8
Equal end of year installment			3121.5
CASH FLOW	1569.6	2720.64	3121.5	0
BEGINNING OF YEAR 5
Interest payment	1569.6	313.92
Principal repayment	10464	2092.8
Equal end of year installment Loan repayment at the end			3121.5	21042.8
CASH FLOW	12033.6	2406.72	3121.5	21042.8