Synergy Bhd sells electrical supplies to building contractors on terms of net 60 . The company needs an additional fund of RM1,000,000.00 to finance its short-term project. The project will take eight (8) months to be completed. Synergy has several alternatives to choose from. Alternative A Synergy has arranged for a line of credit of RM1,000,000.00 with Berkat Bank. The terms of the agreement call for an interest set at 1 percent above prime rate and the interest will be discounted. In addition, the bank required a 10 percent compensating balance. The prime rate is currently 11 percent. Alternative B Issue a commercial paper with a face value of RM100,000.00 each at 9 percent per annum. The issuing cost is RM1,500.00 per paper. Alternative C Forego trade credit with the following credit terms of 3/10 net 60 . REQUIRED: i. Compute the effective cost for each of the alternatives. ii. Choose the best alternative and provide reasons for your