COSTTRADE CREDIT AND BANK LOAN Lancaster Lumber buys s8 million of materials (net of discounts) on terms of 3/5, net 45; and it currently pays on the sth day and takes discounts. Lancaster plans to expand, which will require additional financing. Assume 365 days in year for your calculations. a. II Lancaster decides to Torgo discounts, how much additional credlit could it obtain? Write out your answer completely. For example, S million 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 intenmediate calculations. Round your answer to two decimal places. cWhat would be the effective cost of that credit? Do not round intermediate calculations. Round your answer to two decimal places. d. the crnpany could et the funds rrorn a bank at a rate 0 7% interest aid monthly based on a 365-day year what would be the effect e st the bank on t tround ttermediateca a lat ns. Round our ansv er t wo decimal places e. Should Lancaster use bank debt or additional trade credit? Select