3. A firm's major supplier ($900,000/yr. of purchases which the buyer pays 45 days on average) offers it an early payment discount of 3%/10; net 40. Bank credit for short term revolving loans is currently at 6%. What is the spread between the discount's equivalent annual interest rate (EAIR) and bank interest; how much increase in the bank line of credit (L/C) is needed & what is the before-tax cost-benefit analysis (CBA) result of taking the discount by using bank credit (rounded to nearest *000 = K): O +38% spread, $86K L/C & +$22K/yr. CBA +27% spread, $25K L/C & +14K/yr. CBA -18% spread, $55K L/C & -9K/yr. CBA +7% spread, $105K L/C & +21K/yr. CBA