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#4) (4 Marks) Brian Ltd requires $1,000,000 in financing for 45 days to purchase inventory. They have three alternatives available. Determine the costs for each

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#4) (4 Marks) Brian Ltd requires $1,000,000 in financing for 45 days to purchase inventory. They have three alternatives available. Determine the costs for each alternative and recommend a course of action for Brian Ltd. a) Set-up a Line of Credit. The annual interest rate is 8%. In addition, the bank will charge us an annual fee of $5,000 for having the funds available. We have no other use for this line of credit. b) Forgo trade discount of 3/10; net 55. cl Issue commercial paper for 45 days at a discount of 1.5%

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