Question $13\mathrm{.}8$ Moqhaka Ltd is considering the investment in new plant and equipment at a cost of R$18$m$.$ The company will pay a deposit of R $3$ m $.$ The bank has offered the firm a loan of R $15$ m $,$ repayable in equal annual instalments over $5$ years at an interest rate of $\backslash (9\backslash \%\backslash ).$ The economic life of the project is $5$ years and the company expects to achieve a residual value of R $6$ m on the sale of the equipment at the end of $5$ years. Alternatively, the bank is also prepared to offer a loan of R $15$ m $,$ repayable in equal annual instalments except for a bullet or balloon payment at the end of $5$ years, equal to R$6$m$,$ which the company will pay from the proceeds on sale of the equipment. The interest rate is also $\backslash (9\backslash \%\backslash )$ on this loan. What is the annual instalment required under either loan alternative? What is the interest and capital repayment per year under either alternative?