Wontaby Ltd. is extending its credit terms from 45 to 60 days. Sales are expected to increase from $4.81 million to $5.91 million as a result. Wontaby finances short-term assets at the bank at a cost of 12 percent annually. Calculate the additional annual financing cost of this change in credit terms. (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to the nearest whole dollar. Enter answer in whole dollar not in million.) Annual financing cost $ Your banker has analyzed your company account and has suggested that her bank has a cash management package for you. She suggests that with a concentration banking system, your float can be reduced by four days on average. You, of course, are delighted (you're not sure why), but you do know your average daily collections amount to $345,000. Your opportunity cost of funds is 8 percent. The bank provides this service for $56,500 plus a compensating balance in your current account of $79,000. (A compensating balance is the amount you are required to maintain interest free at that bank.) a. Is this package worth it? Yes No b. By how much? (Negative answer should be indicated by a minus sign.) Annual Saving $ Lett's commercial paper is currently selling at a discount. It sells for 97.39 of par and matures in 100 days. (Use 365 days a year. Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. Calculate its yield as quoted in the market. Yield % b. Calculate its effective annual yield. Effective annual yield %