Hand-to-Mouth (H2M) is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or take out a loan. They owe the supplier $10,000 with terms of 1.6/10 Net 40, so the supplier will give them a 1.6% discount if they pay by today (when the discount period expires). Alternatively, they can pay the full $10,000 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 $10,000 in one month. Alternative B: Borrow the money needed to pay its supplier today from Bank A, which has offered a one-month loan at an APR of 11.5%. The bank will require a (no interest) compensating balance of 4.9% of the face value of the loan and will charge a $90 loan origination fee. Because H2M has no cash, it will need to borrow the funds to cover these additional amounts as well. Alternative C: Borrow the money needed to pay its supplier today from Bank B, which has offered a one-month loan at an APR of 14.8%. The loan has a 1.3% loan origination fee, which again H2M will need to borrow to cover. Alternative A: The effective annual cost is 20.98%. (Round to two decimal places.) Alternative B: The effective annual rate is 25.59%. (Round to two decimal places.) Alternative C: The effective annual rate is 35.27%. 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 B, with the lowest effective annual rate, is the best option for Hand-to-Mouth C. Alternative C, with the lowest effective annual rate, is the best option for Hand-to-Mouth. D. All the alternatives are equivalent. Hand-to-Mouth (H2M) is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or take out a loan. They owe the supplier $10,000 with terms of 1.6/10 Net 40, so the supplier will give them a 1.6% discount if they pay by today (when the discount period expires). Alternatively, they can pay the full $10,000 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 $10,000 in one month. Alternative B: Borrow the money needed to pay its supplier today from Bank A, which has offered a one-month loan at an APR of 11.5%. The bank will require a (no interest) compensating balance of 4.9% of the face value of the loan and will charge a $90 loan origination fee. Because H2M has no cash, it will need to borrow the funds to cover these additional amounts as well. Alternative C: Borrow the money needed to pay its supplier today from Bank B, which has offered a one-month loan at an APR of 14.8%. The loan has a 1.3% loan origination fee, which again H2M will need to borrow to cover. Alternative A: The effective annual cost is 20.98%. (Round to two decimal places.) Alternative B: The effective annual rate is 25.59%. (Round to two decimal places.) Alternative C: The effective annual rate is 35.27%. 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 B, with the lowest effective annual rate, is the best option for Hand-to-Mouth C. Alternative C, with the lowest effective annual rate, is the best option for Hand-to-Mouth. D. All the alternatives are equivalent