Question 3-(50 Marks) Al-Jebreel Company Limited deals in the retail and wholesale of electrical appliances. The company sources for its products directly from manufacturers. Under current trade agreements, the company is allowed access to credit purchases. The terms of the purchases have been set as "5/20, net 60". On their most recent purchase, the company bought appliances to the tune of GH1,000,000 - subject to the same terms of trade. Use the following details to answer the following questions: a) If the company decides to forego the discount as set out in the terms of trade, calculate the relative cost in terms of Annual Percentage Rate and Annual Percentage Yield. (10 marks) b) With respect to your calculations in (a) above, Al-Jebreel has spotted a business opportunity where it stands to make a return of 25.7% should it choose to forego the discount and invest the discounted amount to be paid to its suppliers in this business opportunity. What will be your recommendation to Al-Jebreel? Justify your response. (5 marks) c) Al-Jebreel is contemplating taking advantage of the discount; however, this can only be possible if the company takes up one of two loan options that have been agreed upon as substantial lines of credit for the company. The table below provides the respective terms of the loan: Bank Compensating Balance Loan Amount Duration Rate (p.a.) Interest (GH) Payment Absa 950,000 3 months 35% Arrears N/A Fidelity 950,000 3 months 27.5% Advance 10%