Question: 2 ( 20 MARKS ) A company is evaluating two financing options for a new project : 1. Debt Financing - Borrowing $1,000,000 at an

2 ( 20 MARKS ) A company is evaluating two financing options for a new project : 1. Debt Financing - Borrowing $1,000,000 at an annual interest rate of 6% for five years. 2. Equity Financing - Issuing new shares to raise $1,000,000, expecting an annual return of 10% for investors. Task : Calculate the total cost of each financing option over five years. Discuss the advantages and disadvantages of debt vs. equity financing. QUESTION 3 Recommend the best financing option based on financial and strategic considerations

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