Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 60;...

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Lancaster Lumber buys $8 million of materials (net of discounts)on terms of 3/5, net 60; and it currently pays on the5^th day and takes discounts. Lancaster plans to expand,which will require additional financing. Assume 365 days in yearfor your calculations.
If Lancaster decides to forgo discounts, how much additionalcredit could it obtain? Write out your answer completely. Forexample, 5 million should be entered as 5,000,000. Round youranswer to the nearest cent.
$

What would be the nominal cost of that credit? Do not roundintermediate calculations. Round your answer to two decimalplaces.
%

What would be the effective cost of that credit? Do not roundintermediate calculations. Round your answer to two decimalplaces.
%

If the company could get the funds from a bank at a rate of 7%,interest paid monthly, based on a 365-day year, what would be theeffective cost of the bank loan? Do not round intermediatecalculations. Round your answer to two decimal places.
%
Should Lancaster use bank debt or additional tradecredit?
-Select one of the following:
1.-Bank debt
2.Additional trade credit
PLEASE LABEL ALL 5ANSWERS VERY CLEARLY AND I WILL LEAVEA GOOD REVIEW. ALL PARTS ARE FOR THE SAME QUESTION

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Lancaster Lumber buys $8 million of materials (net of discounts)on terms of 3/5, net 60; and it currently pays on the5th day and takes discounts. Lancaster plans to expand,which will require additional financing. Assume 365 days in yearfor your calculations.If Lancaster decides to forgo discounts, how much additionalcredit could it obtain? Write out your answer completely. Forexample, 5 million should be entered as 5,000,000. Round youranswer to the nearest cent.$What would be the nominal cost of that credit? Do not roundintermediate calculations. Round your answer to two decimalplaces.%What would be the effective cost of that credit? Do not roundintermediate calculations. Round your answer to two decimalplaces.%If the company could get the funds from a bank at a rate of 7%,interest paid monthly, based on a 365-day year, what would be theeffective cost of the bank loan? Do not round intermediatecalculations. Round your answer to two decimal places.%Should Lancaster use bank debt or additional tradecredit?-Select one of the following:1.-Bank debt2.Additional trade credit********PLEASE LABEL ALL 5ANSWERS VERY CLEARLY AND I WILL LEAVEA GOOD REVIEW. ALL PARTS ARE FOR THE SAME QUESTION********