P$15-4$ Aggressive versus conservative seasonal funding strategy Dynabase Tool has forecast its total funds requirements for the coming year as shown in the following table.

b$.$ Describe the amount of long$-$term and short$-$term financing used to meet the total funds requirement under $(1)$ an aggressive funding strategy and $(2)$ a conservalive funding strategy. Assume that, under the aggressive strategy, long$-$term funds finance permanent needs and short$-$term funds are used to finance seasonal needs.

c$.$ Assuming that short$-$term funds cos $5\%$ annually and that the cost of long$-$term funds is $10\%$ annually, use the averages found in part a to calculate the total cost of each of the strategies described in part b$.$ Assume that the frrm can earn $3\%$ on any excess cash balances.

d$.$ Discuss the profitability$-$risk tradeoffs associated with the aggressive strategy and those associated with the conservative strategy.