discount period expires). Alternatively, they can pay the full $10,500 in one month when the invoice is due. H2M is considering three options: Alternative A: Forgo the discount on its trade credit agreement, wait and pay the full $10,500 in one month. H2M has no cash, it will need to borrow the funds to cover these additional amounts as well. Which alternative is the cheapest source of financing for Hand-to-Mouth? Alternative A: The effective annual cost is %. (Round to two decimal places.) Alternative B: The effective annual rate is %. (Round to two decimal places.) Alternative C: The effective annual rate is \%. (Round to two decimal places.) (Select the best choice below.) A. Alternative A, with the lowest effective annual rate, is the best option for Hand-to-Mouth. B. Alternative C, with the lowest effective annual rate, is the best option for Hand-to-Mouth. C. Alternative B, with the lowest effective annual rate, is the best option for Hand-to-Mouth. D. All the alternatives are equivalent