Sunny Coast Enterprises (A). Sunny Coast Enterprises has sold a combination of films and DVDs to Hong Kong Media Incorporated for US$120,000, with payment due in six months. Sunny Coast Enterprises has the following alternatives for financing this receivable. 1) Use its bank credit line. Interest would be at the prime rate of 51% plus 150 basis points per annum. 2) Use its bank credit line but purchase export credit insurance for a 1% fee. Because of the reduced risk, the bank interest rate would be reduced to 5.1% per annum without any points. In both cases Sunny Coast would need to maintain a compensating balance of 18% of the loan's face amount, and no interest will be paid on the compensating balance by the bank. a. What are the annualized percentage all-in costs of each alternative? b. What are the advantages and disadvantages of each alternative'? c. Which alternative would you recommend? (NOTE: Assume a 360-day year.)