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12. A firm requires 2.5 million dollars in financing for a 60-day period. Two alternatives are being considered. Find the cost of each alternative and
12. A firm requires 2.5 million dollars in financing for a 60-day period. Two alternatives are being considered. Find the cost of each alternative and then decide which alternative should be selected. a. Establish a line of credit with the bank at an interest rate of 14 percent. The bank will require a 10 percent compensating balance. Forgo trade discounts from suppliers on terms of 1.5/15, net 60.
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