Willy Caf Inc. needs to borrow $100,000 for a period of one year. There arethreepotential banks that agreed to lend the firm,

The first is a one-year loan fromBank One, the interest charged is 8% APR compounded daily, the second account, Max Saver account withBank of Australia, charging 8.10% APR compounded monthly. The third offer is fromBank of Sydney, charging 8.25% APR compounded annually.

As the CFO of Willy Caf Inc., which bank do you recommend to your firm?

a.Bank One

b.Bank of Australia

c.Bank of Sydney

d.Indifferent between the three banks