You are evaluating two alternative financing arrangements. The first arrangement requires twenty annual payments with the first payment of $10,000 made in a year, while the second arrangement requires that each payment be made a year earlier but is otherwise similar to the first arrangement. (a) If payments subsequent to the first increase at an annual rate of 5%, and the capital the financiers would be willing to provide under the second arrangement (7 marks) If payments are level, and the financiers require a 10% return on both arrangements, calculate how much more capital would the financiers be willing to provide under the second arrangement? (b) 7 marks) Explain why financiers are willing to provide more capital under the second arrangement in parts (a) and (b). (c) (2 marks)