(Cost of secured short-term credi) The Marlow Sales and Distribution Co. needs $520,000 for the 3-month period ending September 30, 2018. The firm has explored two possible sources of credit a. Marlow has arranged with its bank for a $520,000 loan secured by its accounts receivable. The bank has agreed to advance Marlow 80 percent of the value of its pledged receivables at a rate of 11 percent plus a 1 percent fee based on all receivables pledged. Marlow's receivables average a total of $1 milion year-round b. An insurance company has agreed to lend the $520,000 at a rate of 9 percent per annum, using a loan secured by Marlow's inventory of salad oil. A field-warehouse agreement would be used, which would cost Marlow $2,200 a month Which source of credit should Marlow select? Explain. Note: Assume a 30-day month and 380 day year The cost of APR of the pledging accounts receivable is % (Round to two decimal places) The cost or APR, of the loan secured by inventory is 0% (Round to two decimal places) Marlow should select the loan, since its cost is lower under the conditions presented (Select from the drop-down menu.)