A company must finance some short term liquidity needs of 2 Million Euros for 3 months and then a long term investment for 20 years for an amount of 2 Million Euros. The company cannot increase its debt by more than 3.5 Million Euros. There are different options for the financial directors. The bank can provide a credit line to the company for 3 Months at an interest rate of 0.5% for a limited amount of 900,000 Euros The company can issue commercial papers with a yield of 0.6% for an unlimited amount for 3 months. The 15 years long term credit condition from the bank is at 2% (with a maximum capacity at 1 Millions). The bond market allows a refinancing at a rate of 3% for an unlimited amount. Shareholder requires a return on investment of 20%. Help the financial director to determine the optimal strategy to finance the different needs. Determine the average cost of financing in the short and the long term