a) Asia City Ltd needs an additional fund of RM250.000 to finance its short-term project. The project will take 8 months to be completed. The company has the following alternatives to choose from: i) Foregoing trade credit with the term of 5/20 net 90 . (Use 360-day year). (2 marks) ii) Issue commercial paper at an interest rate of 10% per annum. The placement fee is RM 4,000 per paper and the face value of each paper is RM50,000. (4 marks) iii) Loan from Kiko Bank charging 12% per annum on a discounted basis and requiring a compensating balance of 15% of the loan. The company normally maintains RM 17,500 in its account. (4 marks) iv) Which one is the best alternative? Why? (2 marks) a) Asia City Ltd needs an additional fund of RM250.000 to finance its short-term project. The project will take 8 months to be completed. The company has the following alternatives to choose from: i) Foregoing trade credit with the term of 5/20 net 90 . (Use 360-day year). (2 marks) ii) Issue commercial paper at an interest rate of 10% per annum. The placement fee is RM 4,000 per paper and the face value of each paper is RM50,000. (4 marks) iii) Loan from Kiko Bank charging 12% per annum on a discounted basis and requiring a compensating balance of 15% of the loan. The company normally maintains RM 17,500 in its account. (4 marks) iv) Which one is the best alternative? Why? (2 marks)