Please help solve both A and B.

Forfaiting at Umaru Oil (Nigeria). Umaru Oil of Nigeria has purchased $1,310,000 of oll drilling equipment from Gunslinger Drilling of Houston, Texas. Umaru Oil must pay for this purchase over the next five years at a rate of \$262,000 per year due on March 1 of each year, Bank of Zurich, a Swiss forfaiier, has agreed to buy the five notes of $262,000 each at a discounL. The discount rate would be approximately 8.2% per annum based on the expected 3 -yoar LiBOR rate plus 200 basis points, paid by Umaru Oit: Bank of Zurich would also charge Umaru Oil an additional commitmen fee of 1.8% per annum from the date of its commitment to finance until receipt of the actual discounted notes issued in accordance with the financing contract. The $262,000 promissory notes will come due on March 1 in successive years. The promissory notes issued by Umaru Oil will be endorsed by their bank, Lagos City Bank, for a 1.2\% fee and delivered to Gunslinger Drilling. At this point, Gunslinger Drilling will endorse the notes without recourse and discoumt them with the forfalter, Bank of Zurich, receiving the full $262,000 principal amount. Bank of Zurich will sell the notes by re-discounting them to investors in the international money market without recourse. At maturity, the investors holding the noles will present them for collection at Lagos City Bank. If Lagos City Bank dolaults on payment, the investors will collect on the notes from Bank of Zurich. a. What is the annualized percentage all-in cost to Umaru Oit of financing the first $262,000 note due March 1,2011? b. What might motivate Umaru Oil to use this relatively expensive altemative for financing? (NOTE: Assume a 360-day year.) a. What is the annualized percentage all-in cost to Umaru Oil of financing the first $262,000 note due March 1, 2011? Calculate total interest and fees below: (Round to the nearest dollar)