Your startup company ("Container Homes LLC," which as an LLC pays no income tax) aims to make money while helping to solve Oxford's housing problem. Your firm aims to convert shipping containers to tiny houses and sell the completed homes. The firm has $50K available to convert one container. Your are considering two options: A) Convert and sell one container (No Debt Option), and B) Get a long-term loan for $50K and convert and sell two containers (Loan Option). Here is some data your CFO has compiled for each option: Notes: Container Homes LLC Container to Tiny Home Project Scenario Project Duration Equity capital budget Debt capital budget Total Capital budget No Debt Option Convert 1 Container 12 months 50.00 0.00 50.00 Loan Option Convert 2 Containers 12 months 50.00 50.00 100.00 Amount of CH own money to use. Long-term loan w 10% annual int. Projected Cash Flows for this project Container Purchase Price Conversion to Tiny Home Costs Interest @10% Resale price, as Tiny Home NI No Debt Option -30.00 -20.00 0.00 70.00 Loan Option -60.00 -40.00 -5.00 140.00 Paid at time of resale, after 12 months LLC pays no Income Tax ROE Use this info to answer the following questions, Which Plan is Riskier and Why? Choose one plan and the single best reason to support your answer. It is less levered The Loan Option It is more highly levered It has a lower Z score There is less equity put into this project The No Debt Option Marketplace interest rates may move materially in a year