My question is TIMED. Big thanks!

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 $12,500 with terms of 1.6/10 Net 40, so the supplier will give them a 1.6% discount if they pay by today (when the discount period expires). Alternatively, they can pay the full $12,500 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 $12,500 in one month. The effective annual cost is what %?

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 11.7%. The bank will require a (no-interest) compensating balance of 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. The effective annual rate is %?

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 15.3%. The loan has a 0.6% loan origination fee, which again H2M will need to borrow to cover. The effective annual rate is %?

(For all above, please round to two decimal places.)

Select one choice below:

A. Alternative Upper B, with the lowest effective annual rate, is the best option for Hand-to-Mouth.

B. Alternative Upper A, with the lowest effective annual rate, is the best option for Hand-to-Mouth.

C. Alternative Upper C, with the lowest effective annual rate, is the best option for Hand-to-Mouth.

D. All the alternatives are equivalent.