(Cost of secured short-term credit) The Marlow Sales and Distribution Co. needs $540,000 for the 3-month period ending September 30, 2015. The firm has explored two possible sources of credit a. Marlow has arranged with its bank for a $540,000 loan secured by its accounts receivable. The bank has agreed to advance Marlow 75 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 million year-round . An insurance company has agreed to lend the $540,000 at a rate of 9 percent per annum, using a loan secured by Marlow's inventory of salad oil. A Beld warehouse agreement would be used, which would cost Marlow 51,500 a month Which source of credit should Marlow select? Explain. Note: Assume a 30 day month and 360 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 % (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.) time conabons presented Enter your answer in each of the answer boxes 10:07 AM 3/8/2020