Click here to read the eBook: Accounts Payable (Trade Credit) Click here to read the book: Bank Loans Problem Walk Through COST OF TRADE CREDIT AND BANK LOAN Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 40; and it currently pays on the 5th day and takes discounts. Lancaster plans to expand, which will require additional financing. Assume 365 days in year for your calculations. I Lancaster decides to forgo discounts, how much additional credit could it obtain? Write out your answer completely. For example, 5 milion should be entered as 5,000,000. Round your answer to the nearest cent. b. What would be the nominal cost of that credit? Do not round intermediate calculations. Hound your answer to two decimal places c. What would be the effective cost of that credit Do not round intermediate calculations. Round your answer to two decimal places d. If the company could get the funds from a bank at a rate of 12%, interest paid monthly based on 365-day year, what would be the effective cost of the bank loan? Do not round Intermediate calculations. Round your answer to two decimal places e. Should Lancaster une bank debt or additional trade credit