3.1) Based on the scenario below, answer the questions that follow: Your department is expanding, and you need to motivate for a new office space. You have found a suitable space which is available to rent or buy. Based on the following information decide on what you think would be the best option and give a detailed motivation to management validating your decision. Rent per month for new space: R30 000.00 with a fixed 5% increase per annum. Rental agreement will be reviewed annually. Purchase options: Financing options from bank on loan to purchase for a sum of R 10 000 000.00. Repayment period will be over 10 years: Simple Interest : 4% Compound Interest : 2% per annum Current production costs are high and this can be slightly reduced if more machinery is purchased. This can only be done if the rental option is chosen. It must also be noted that the current economy is favourable to property investment and is projected to stay that way at least for the next 5 years. 3.1.1) Calculate the rental expense over 10 years