today, IS wo loan options, with different banking entities, to finance the purchase of 10 new vans for the distribution of its products in a new area of the city. Conditions with the bank A: Amount: 220,000 euros Repayment period: 3 years Nominal interest rate: 1.85% per annum Payments will be made every six months, with disbursement taking place on the last day of each semester. Basis: 180/360 Comission fee: 0.99% (of nominal value) Conditions with bank B: Amount: 220,000 euros Repayment period: 3 years Nominal interest rate of exit of 2.50% during the first year. For the rest of years: mortgage EURIBOR + 1.10% (annual reviews). Use the expected EURIBOR values for next years (table shown below) Payments will be made every six months, with disbursement taking place on the last day of each semester. Basis: 180/360 Comission fee: 0.99% (of nominal value) Expected EURIBOR values Date 26-Mar-21 26-Mar-22 EURIBOR -0.040% -0.135% Using the French loan system, calculate for each option: 1. Total payment 2. Loan repayment schedules 3. Effective interest rate (in annual terms) 3. Choose the most attractive payment option if you want to minimize the cost of financing, and justify your decision. Then, If the expected Free Cash Flows from this investment are expected to be as follows: Year 2020 FCF -220,000 2021 60,000 2022 72,000 2023 98,000 Is this investment worth it?