(e) GoodtoExport Sdn Bhd (G2Ex) of Malaysia currently has 60 foreign orders outstanding, with a typical order averaging at $18,000 due to be settled in 45 days. G2Ex is considering the following two alternatives to protect itself against credit risk on these foreign orders: 1. Request a letter of credit. The cost would be $80 plus 0.75% of the invoice amount. To remain competitive, G2Ex would have to absorb the cost of the letter of credit; OR 11. Factor the receivables. The factor would charge a nonrecourse fee of 1.20%. Assuming 360 days in a year, which alternative would you recommend to G2Ex? Why? (7 marks) [Total: 30 marks]