Forfaiting at Umaru Oll (Nigeria). Umaru Olof Nigeria has purchased $1,190,000 of oil drilling equipment from Gunslinger Drilling of Houston, Texas. Umaru Oil must pay for this purchase over the next five years at a rate of $238,000 per year due on March 1 of each year. Bank of Zurich, a Swiss forfaiter, has agreed to buy the five notes of $238,000 each at a discount. The discount rate would be approximately 8.2% per annurn based on the expected 3-year LIBOR rate plus 200 basis points, paid by Umaru Oil Bank of Zurich would also charge Umaru Oil an additional commitment fee of 2.1% per annum from the date of its commitment to finance until receipt of the actual discounted notes issued in accordance with the financing contract. The $238,000 promissory notes will come due on March 1 in successive years. The promissory notes issued by Umaru Oil will be endorsed by their bank, Lagos City Bank, for a 1% fee and delivered to Gunslinger Drilling. At this point, Gunslinger Drilling will endorse the notes without recourse and discount them with the fortalter, Bank of Zurich, receiving the full $238,000 principal amount Bank of Zurich will sell the notes by rediscounting them to investors in the international money market without recourse. At maturity, the investors holding the notes will present them for collection at Lagos City Bank. If Lagos City Bank defaults on payment, the investors will collect on the notes from Bank of Zurich a. What is the annualized percentage all-in cost to Umaru Off of financing the first $238,000 note de March 1, one year from today? b. What might motivate Umaru Oil to use this relatively expensive alternative for financing? (NOTE: Assume a 360-day year) What is the annualized percentage all-in cost to Umaru Oil of financing the first $238,000 note due March 1, one year from today? Calculate total interest and foes below. (Round to the nearest dollar) Total interest and Fees Face amount of note: $238.000 Los Lagos City bank endorsement fee (15) Lou Bank of Zurich commitment too for one year 12.1%) Les discount on note LIBOR plus spread (8.2%) Total interest and Fees 5 The annualized percentage in cost (AIC) (Round to three decimal places) Enter any number in the edit fields and then continue to the next