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ApproximateannualrateAdd-oe=(Amomirecelved)/2Imtermetpuld Costly trade credit can be very expensive, so often a firm will choose to borrow from a bank and pay trade discounts rather than paying after the discount period. Firms will choose the lowest-cost source. Quantitative Problem: Adams Manufacturing Inc. buys $9.2 million of materials (net of discounts) on terms of 2/10, net 50 ; and it currently pays after 10 days and takes the discounts. Adams plans to expand, which will require additional financing. If Adams decides to forgo discounts, how much additional credit could it obtain? Assume 365 days in vear for your calculations. Do not round intermediate calculations. Round your answer to the nearest cent. 4 What would be the nominal and effective cost of such a credit? Assume 365 days in year for your calculations. Do not round intermediate calculations, Round your answer to two decimal places. Nominal cost: Effective cost: If the company could receive the funds from a bank at a rate of 9.65%, interest paid monthly, based on a 365 \$hay year, what would be the elfective cost of the bank loan? Do not round intermediate calculations. Round your answer to two decimal places. ApproximateannualrateAdd-oe=(Amomirecelved)/2Imtermetpuld Costly trade credit can be very expensive, so often a firm will choose to borrow from a bank and pay trade discounts rather than paying after the discount period. Firms will choose the lowest-cost source. Quantitative Problem: Adams Manufacturing Inc. buys $9.2 million of materials (net of discounts) on terms of 2/10, net 50 ; and it currently pays after 10 days and takes the discounts. Adams plans to expand, which will require additional financing. If Adams decides to forgo discounts, how much additional credit could it obtain? Assume 365 days in vear for your calculations. Do not round intermediate calculations. Round your answer to the nearest cent. 4 What would be the nominal and effective cost of such a credit? Assume 365 days in year for your calculations. Do not round intermediate calculations, Round your answer to two decimal places. Nominal cost: Effective cost: If the company could receive the funds from a bank at a rate of 9.65%, interest paid monthly, based on a 365 \$hay year, what would be the elfective cost of the bank loan? Do not round intermediate calculations. Round your answer to two decimal places