. Do not round factors. Take them at least 7 places passed the decimal point. All loans herein are compounded monthly. Good Luck! 1. (Refinance Decision) Amount Terms Cost of Refinancing Original Loan $150,000 6%, 30 New Loan ______ 3.6%, __ $3,000 The original loan has been outstanding for 5 years. The owner plans to retain ownership of the property for another 7 years. The opportunity cost is 9%. Show MPVIFA numbers. Should the loan be refinanced? Remember to answer this question using Present Value (PV) Analysis. Show the table with labels when answering this question.

C. Decision using Marginal Cost and Marginal Benefit Analysis