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Maxwell Corp. expects that it will require $150,000 in cash for the month of November. The funds are only needed for the month of November

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Maxwell Corp. expects that it will require $150,000 in cash for the month of November. The funds are only needed for the month of November as the Christmas sales in December will provide enough cash flow to repay any financing obtained. It is considering the following 4 financing options: a. Obtain a 6-month line of credit for $150,000 with Pacific bank. The commitment fee will be 0.5% per year on any unused amounts and the interest rate on any used funds will be 7% per year. b. Obtain a discount interest loan for 30 days from Western bank at an interest rate of 7.5% per year. c. Issue $150,000 in 30-day commercial paper at an interest rate of 6% per year. There will be an issuance fee of 0.25% of the total amount of the issue. d. Forego the trade discount of 1/10, net 30 on $150,000 of purchases for the month of November and pay on the 40th day

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