QUESTION 5 a) Cahaya Cinta Sdn Bhd is facing a financial shortage for this 7 months period. They need to find RM770,000 to support their short term project. The company has the following financial alternatives. Compute the effective interest rate for each alternative. i) Borrow from Malaysia Islamic Bank on a discounted basis and pay 6.5 percent annual interest rate. (3 marks) ii) Issue commercial paper with 7 percent annual interest rate. Cost of issuing is RM2,500 each paper with a face value of RM22,000. (4 marks) iii) Foregoing a trade credit with favorable term of 10/50 net 100. (2 marks) iv) To obtain a revolving line of credit of RM1,000,000 from OCOD Bank with 6.7 percent annual interest rate for the used loan. Besides that, the company needs to pay a commitment fee of 6.5 percent on the unused loan. (5 marks) iv) Identify the best alternative for Cahaya Cinta Sdn Bhd and provide reason. (2 marks)