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 own the supplier $10,000 with terms of 2/10 Net 40, so the supplier will give them a 2% 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 months. 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 12%. The bank will require a no interest) compensating balance of 5% of the face value of the loan and will charge a $100 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 15%. The loan has a 1% loan origination fee, which again H2M will need to borrow to cover. Which alternative should H2M adopt? Answer: The effective annual cost for Alternative Als %. (Round to two decimal places:) The effective annual cost for Alternative Bis %. (Round to two decimal places.) %. (Round to two decimal places) The effective annual cost for Alternative C is The best alternative for H2M is (answer "A", "B" "Cor "D"). 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