Botany Bay could borrow the US $$30,000,000$ for two years at a fixed $4\%$ rate of interest.

Botany Bay could borrow the US $$30,000,000$ at LIBOR $+1\mathrm{.}5\%.$ LIBOR is currently $3\mathrm{.}5\%,$ and the rate would be reset every six months.

Botany Bay could borrow the US $$30,000,000$ for one year only at $4\mathrm{.}5\%.$ At the end of the first year, Botany Bay would have to negotiate for a new one$-$year loan.

Botany Bay could borrow the US $$30,000,000$ for two years at a fixed $4\%$ rate of interest.

For Alternative $1,$ the interest cost per year is $$,$ for the first year and $ for the second year. $($Round to the nearest dollar.$)$

For Alternative $1,$ the certainty over access to capital is:

for the first $6$ months,

For Alternative $1,$ the certainty over the cost of capital is:

for the first $6$ months,

for the second $6$ months,

Botany Bay could borrow the US $$30,000,000$ at LIBOR $+1\mathrm{.}5\%.$ LIBOR is currently $3\mathrm{.}5\%,$ and the rate would be reset every six months.

For Alternative $2,$ the interest cost for the first six months is $9,($Round to the nearest dollar.$)$

For Alternative $2,$ the certainty over access to capital is:

for the first $6$ months,

for the second $6$ months,

for the third $6$ months, and

for the fourth $6$ months. $($Select from the drop$-$down menus.$)$

For Alternative $2,$ the certainty over the cost of capital is:

for the first $6$ months,

for the second $6$ months,

for the third $6$ months, and

for the fourth $6$ months. $($Select from the drop$-$down menus.$)$

Botany Bay could borrow the US $$30,000,000$ for one year only at $4\mathrm{.}5\%.$ At the end of the first year, Botany Bay would have to negotiate for a new one$-$year loan.

For Alternative $3,$ the interest cost for the first year is $

and for the second year is

$($Round to the nearest dollar and select from the drop$-$down menu.$)$

For Alternative $3,$ the certainty over access to capital is:

for the first $6$ months,

for the second $6$ months,

for the third $6$ months, and

for the fourth $6$ months. $($Select from the drop$-$down menus.$)$

For Alternative $3,$ the certainty over the cost of capital is:

for the first $6$ months,

for the second $6$ months,

for the third $6$ months, and

for the fourth $6$ months. $($Select from the drop$-$down menus.$)$

Only Alternative

has a certain access and cost of capital for the full $2-$year period. Alternative

$,$ possessing a lower interest cost in year $1,$ has no guaranteed access to capital in the second year. Alternative

has certain access to capital for both years, but the

interest costs in the final $3$ of $4$ periods is uncertain.