B. XXY Berhad is a company in the computer industry. The company is seeking a loan to install a computer system. The total cost of the system is RM500,000 of which only 75% financing is required. The following are three (3) financing alternatives for XXY Berhad to consider. Alternative 1: A loan from AA Bank for 9 months. XXY Berhad has a balance of RM5,000 in its current account. Total interest charged is 8% and the interest will be paid in advance. A 12% compensating balance is required. Alternative 2: XXY Berhad can takes a 9-month line of credit from BB Bank for RM500,000 with an interest rate of 2% above the prime rate of 8% per annum and the bank will charge a 4% commitment fee on the unutilized amount during the year. Alternative 3: XXY Bhd plan to issue commercial paper of RM375,000. The commercial paper will carry a 150-day maturity and require interest based on a rate of 9% per annum. The firm will have to pay dealer fees of RM2,750. Note: Assume 360-day a year. Required: Determine the best financing alternative for XXY Berhad