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Hand-to-Mouth (H2M) is currently? cash-constrained, and must make a decision about whether to delay paying one of its? suppliers, or take out a loan

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Hand-to-Mouth (H2M) is currently? cash-constrained, and must make a decision about whether to delay paying one of its? suppliers, or take out a loan. They owe the supplier $11,000 with terms of 1.8?/10 Net? 40, so the supplier will give them a 1.8% discount if they pay by today? (when the discount period? expires). ? Alternatively, they can pay the full $11,000 in one month when the invoice is due. H2M is considering three? options:

Alternative? A: Forgo the discount on its trade credit? agreement, wait and pay the full $11,000 in one month.

Alternative? B: Borrow the money needed to pay its supplier today from Bank? A, which has offered a? one-month loan at an APR of 11.9%. The bank will require a? (no-interest) compensating balance of 4.6% of the face value of the loan and will charge a $110 loan origination fee. Because H2M has no? cash, it will need to borrow the funds to cover these additional amounts as well.

Alternative? C: Borrow the money needed to pay its supplier today from Bank? B, which has offered a? one-month loan at an APR of 14.7%. The loan has a 1.4% loan origination? fee, which again H2M will need to borrow to cover.

Alternative A: The effective annual cost is _______%

Alternative B: The effective annual cost is _______%

Alternative C: The effective annual cost is _______%