The EHoceve Aninual Rate (EMP) captures the tetal cost of borrowing. induding both interest costs and oltier fees assocated with short term berrowing. You ate the Vice President of Finatce for Houma Heirloom Seed Companr, and coe of your duties ia to neqotiate terms for borrowing under your company's $3 mabon credit line. You need to borrow 51 million for one year to finance the recevrableo and irrventory related to a new product tine. (Wote: rou will need the full use of the $1 million, so arn fees, inberest, or balances will be in addition to the $1 mitioni.) Calculice the dAe for euch aftemative offered by yeur bank Option A- 5.00\% annual rate on a simple interest basks. There are no compersating balances and the interest is porable quarterly. Option ni: 5.70 discount interest. The face amount of the loan is repaid at the end of the year. Ovbon Cr \$,75\%, discount ieterest, with compeniatio balances of $20,000 in a non-interest bearing accecent. The face amourt of the foan is repaid at the end of the year, and the comcencating balantes are returned. - The est of oction A is + The EAR of eption 11 is - The EAR of option C Is - The best alterrative for Houma Bedrlotam Seed company ia