Marching Union Ltd. requires $900,000 in financing for a 45-day period. Three alternatives are being considered. Which alternative should be selected? 

a) Establish a line of credit with the bank at an interest rate of 10 percent. The bank will charge an annual commitment fee of $2,500 percent to establish the line of credit. 

b) Forgo trade discounts from suppliers on terms of 2/15, net 60. 

c) Issue commercial paper for 45 days at a discount of 1.72 percent.

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