Inventory financing Raymond Manufacturing faces a liquidity crisis-t needs a loan of $144,000 for 1 month Having no source of additional unsecured borrowing, the firm must find a secured short-term lender. The firm's accounts receivable are quite low, but its inventory is considered liquid and reasonably good collateral. The book value of the inventory is $432,000, of which $172,800 is finished goods. (Note: Assume a 365-day year) (1) City-Wide Bank will make a $144,000 trust receipt loan against the finished goods inventory The annual interest rate on the loan is 11.9% on the outstanding loan balance plus a 0.12% administration fee levied against the $144.000 initial loan amount. Because it will be liquidated as inventory is sold. the average amount owed over the month is expected to be $102,001 (2) Sun State Bank willend $144,000 against a floating lien on the book value of inventory for the 1-month period at an annual interest rate of 13.6% (3) Citizens' Bank and Trust will lend $144,000 against a warehouse receipt on the finished goods inventory and charge 15,4% annual interest on the outstanding loan balance. A 0.64% warehousing fee will be levied against the average amount borrowed. Because the loan will be liquidated as inventory is sold, the average loan balance is expected to be $88.400 a. Calculate the dollar cost of each of the proposed plans for obtaining and initial loan amount of $144,000 b! Which plan do you recommend? Why? If the firm had made a purchase of $144,000 for which it had been given terms of 2/15 net 32, would it increase the firm's profitability to give up the discount and not borrow as recommended in part b? Why or why not