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You are asked to select one of the following choices as best offer for borrowing P5,000,000 for one month: Cost of borrowing Credit line 7.00%

You are asked to select one of the following choices as best offer for borrowing P5,000,000 for one month:

Cost of borrowing

Credit line 7.00%

Banker's acceptance 6.79%

Commercial Paper 6.56%

Decide and Explain

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