Waverly Corporation has an existing loan in the amount of $5 million with an annual interest rate of 5.9%. The company provides an internal company-prepared financial statement to the bank under the loan agreement. Two competing banks have offered to replace Waverly Corporation's existing loan agreement with a new one. First Capital Bank has offered to loan Waverly $5 million at a rate of 4.7% but requires Waverly to provide financial statements that have been reviewed by a CPA firm. Credit One Bank has offered to loan Waverly $5 million at a rate of 3.8% but requires Waverly to provide financial statements that have been audited by a CPA firm. Waverly Corporation's controller approached a CPA firm and was given an estimated cost of $29,000 to perform a review and $39,000 to perform an audit Read the requirements. (Enter amounts in dollars, not millions, throughout.) bfil A mrry megg Existing loan (No CPA service) First Capital Bank (CPA Review service) www 05 290.0005 295,000 29,000 $ 39,000 $ 235,000 $ 264,000 190,000 $ 220,000 egg Credit One Bank (CPA Audit service) F Indicate whether Waverly should keep its existing loan, accept the offer from First Capital Bank, or accept the offer from Credit One Bank CBased on the analysis in the preceding step, Waverly should accept the offer from Credit One Bank. Requirement c. Assume that First Capital Bank has offered the loan at a rate of 4.7% with a review, and the cost of the audit has increased to $99.000 due to new lo auditing standards requirements. Indicate whether Waverly should keep its existing loan, accept the offer from First Capital Bank, or accept the offer from Credit One In Bank. D Begin by calculating the annual costs under each loan agreement. (Complete all input fields. Enter a "0" for any zero balances.) H Cost of CPA Services Annual Interest Annual Loan Cost th Lender pi in Existing loan (No CPA service) in First Capital Bank (CPA Review service) at Credit One Bank (CPA Audit service) Clear all Check answer