Woolworth has decided to borrow $10,000,000 via floating rate loan for 3 years. It must decide between two competing loan offerings from two banks:

CBA has offered the three-years loan at LIBOR+1.5% with an up-front initiation fee of 1%. Westpac bank however, has offered LIBOR+3%, but with no initiation fees up-front, for the same term and principal. Both banks reset the variable rates at the end of each year. LIBOR is currently 3.5% and Woolworth financial advisory forecasts that LIBOR will rise by 0.25% per year. All interest will be paid at the end of each year and principal to be paid at the end of term contract. Woolworth's cost of capital(WACC) is 6%. Fill up the following the forecasted cash flows for both loan offers and advise on the better alternative:

Bank	Year 0	Year 1	Year 2	Year 3
CBA
Westpac