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mber powered by Go @ https://www math.. ?- C -FLDo Homework-Amanda P.X le Edit View Favorites Tools Help IN-330-Q5134 Corporate Finance 18EWS AmandaParont 162??? 2:09PM lomework: 7-1 MyFinanceLab Homework: Working Capital Managen core: 0 of 4 pts HW Score: 4321%, 172, af 40 18-9 (similar to) Oueston Help Related to Checkpoint 18.2) (Calculating the cost of short-term financing) The R. Morin Construction Company needs to bornow $00,000 to help nance the cost of a nevw 120,000 hydraulic crane used in the fiarm's commercial construction business. The crane wil pay for iselt in one year, and the firm is considering the following atermatives for inancing its purchase Alternative A. The firm's bank has agreed to lend the $80,000 at a rate of 13 percent Interest would be discounted, and a 16 percent compensating balance would be requed However, the compensating-balance requirement is not binding on the fim because it normaly maintains a minimum demand deposit (checking account) balance of $20,000 the bank dealer has agreed to Snance the equipment with 1-year loan The $80,000 loan requires payment of principal and interest totaling 393 104 percent of the loan, what effect would this have had on the cost of the ak a. Which alternative should Morin select? b. If the bank's compensating balance requirement had necessitabed idle demand deposits equal to t6 loan alternative? (Round to hodernal places) a. The cost of Alternative A would be Enter your anawer in the arewer box and then click Check Acener parts