Gibbs Corporation needs to raise $1,000,000 for one year to supply working capital to a new store. Gibbs buys from its suppliers on terms of 4/10 net 90 and it currently pays on the 10^th day, taking advantage of all offered discounts. If they forego discounts, pay on the 90^th day and get the needed $1,000,000 in the form of trade credit what will this cost the firm? Alternatively, Gibbs could borrow from the bank at an effective rate of 17.65%. Which alternative should they choose? [Hint you will need to determine the Effective Annual Rate of the trade credit]