Goeing is facing an unexpected increase in its working capital requirement due to disruption in operations caused by covid-19. The firm is considering pledging its 128,000 metric tons of Titanium reserves inventory to secure a short-term loan. A commercial bank has agreed to lend 72% of the pledged inventory at the current market value of $5,350 per metric ton with 2.5% annual rate above prime, which is currently 6.5%. In addition, the bank charges a service fee of 1% of the pledged inventory and the warehouse at which the Titanium will be stored charges another 1.5% in warehouse fee. In addition, the bank requires proof of commodity insurance on the pledged Titanium that will cost Goieng $4 million upfront to provide. The interest payments and the fees, however, are payable at the end of the borrowing period of 75 days. What is the annual financing cost (AFC)? [10 points] Goeing is facing an unexpected increase in its working capital requirement due to disruption in operations caused by covid-19. The firm is considering pledging its 128,000 metric tons of Titanium reserves inventory to secure a short-term loan. A commercial bank has agreed to lend 72% of the pledged inventory at the current market value of $5,350 per metric ton with 2.5% annual rate above prime, which is currently 6.5%. In addition, the bank charges a service fee of 1% of the pledged inventory and the warehouse at which the Titanium will be stored charges another 1.5% in warehouse fee. In addition, the bank requires proof of commodity insurance on the pledged Titanium that will cost Goieng $4 million upfront to provide. The interest payments and the fees, however, are payable at the end of the borrowing period of 75 days. What is the annual financing cost (AFC)? [10 points]