URGENT PLEASE HELP.

As Chief Financial Officer of your company, you have been asked to create a strategy for financing the company's future plans.

Here is what you know:

1) The company's annual profit is currently positive at the rate of $ 1,000,000 per year.

2) The company has a $ 5,000,000 line of credit at the bank that matures in two years. It has been used for a total current loan of $ 3,000,000. This line of credit is fixed at an interest rate of 5% for the life of the loan.

3) An investment bank has offered the company a $ 5,000,000 10 year note at 6% that must be used, in part, to pay off the bank loan. The note is convertible into common stock of the company at a valuation of $ 30,000,000.

You believe that over the next two years, the US economy will experience massive inflation. This will allow your company to substantially raise its prices while its main cost inputs, except for labor are fixed. This will result in an increase in annual profitability to $ 3,000,000.

Should you take the offer of the investment bank? Whether your answer is no or yes, please explain your thinking. And do not take too much time or write too much. A few paragraphs is sufficient.