Score: 0 of 10 pts 3 of 12 (11 complete) HW Score: 87.5%, 105 of 120 pts P 20-8 (similar to) Question Help Hand to Mouth (H2M) is currently cash-constrained, and must make a decision about whether to dolay paying one of its suppliers, or take out a fan. They owe the supplier $13.000 with terms of 16/10 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 $13,000 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 $13,000 in one month Alternative B: Borrow the money needed to pay its supplier today from Bank A, which has offered a one-month loon at an APR of 12.4% The bank will require a (no interest) compensating balance of 51% of the face value of the loan and will charge a $100 loan origination fee. Because H2M has no cash, it will need to borrow the funds to cover these additional amounts as well Alternative C: Borrow the money needed to pay is supplier today from Bank B, which has offered a one month loan at an APR of 14,9%. The loan has a 1% loan origination fee which again 12M will need to borrow to cover Alternative A: The effective annual contis > (Round to two decimal places)