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 $11,500 with terms of 2.2/10 Net 40, so the supplier will give them a 2.2% discount if they pay by today (when the discount period expires). Alternatively, they can pay the full $11,500 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 $11,500 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 12.1%. The bank will require a (no-interest) compensating balance of 4.5% of the face value of the loan and will charge a $95 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 14.6%. The loan has a 0.9% loan origination fee, which again H2M will need to borrow to cover Alternative A: The effective annual cost is % (Round to two decimal places.) Alternative B: The effective annual rate is %. (Round to two decimal places) Alternative C: (Round to two decimal places) The effective annual rate is % (Select the best choice below.) A. Alternative A with the lowest effective annual rate, is the best option for Hand-to-Mouth OB. Alternative C with the lowest effective annual rate is the best option for Hand-to-Mouth C. Alternative B. with the lowest effective annual rate is the best option for Hand-to-Mouth OD. All the alternatives are equivalent