Hzi Sdn Bhd is considering a trade credit option of 2/10 net 40, in the past the same supplier was agreeable when the payment is stretched by 5 days. The company urgently needs RM50,000 to pay within the discount period. The following financing options were available: Option A A loan from MBC Bank for 4 months at a discounted interest of 6% with a required compensating balance of 18%. Option B A loan from Bank Nation for 4 months at 6% simple interest with 20% compensating balance. Hzi Sdn Bhd currently maintains a current balance of RM2,000 in the bank. However, it is insufficient to cover the compensating balance of the new loan. Option C A line of credit of RM80,000 for 4 months from Sysmatic Bank at an interest of 6% and 2% of commitment fee on the unused amount. Required: a. Calculate the cost of forgoing the cash discount. (2 marks) b. Calculate the effective annual cost of each option. (7 marks) C. Advise whether Hzi Sdn Bhd should take the cash discount. (1 mark)