Maryville University of Saint Louis Financing a New Clinic Paper X Health is needing to build a new clinic costing $5.0 million. The use of charts, graphs,

Maryville University of Saint Louis Financing a New Clinic Paper X Health is needing to build a new clinic costing $5.0 million. The use of charts, graphs, tables, etc. is recommended where appropriate.Use one option (below) to finance the construction of the new clinc and answer these questions:What are the advantages to the scenario? What are the risks with the scenario? Make a case for your scenario as if you are the CFO and are attempting to convince the CEO that your scenario is the most preferred.
Scenario 1: Borrow 90% from Bill’s Bank & Trust at the Prime Interest Rate with a 20-year amortization and an interest rate re-set every five years. The remaining 10% will be used from Cash and Investments.
Scenario 2: Borrow 50% from Bill’s Bank & Trust under the same terms as Scenario 1 and the remaining 50% from Cash & Investments.
Scenario 3: Borrow 25% from Bill’s Bank & Trust under the same terms as Scenario 1 and the remaining 75% from Cash & Investments.