Problem #1: 1 Assume you want to finance the entire net working capital with a five year fixed rate loan. The loan rate is 4.15%. Loan could be for $6,000. There are times when you do not need all $6,000 and so you will invest the unneeded funds such as ($6,000 - $2,125) in marketable securities earning 2%. a. Calculate the all-in cost of the loan. b. Calculate the average current ratio