The Macrohard Corporation projects an increase in sales from $18million to $25 m

The Macrohard Corporation projects an increase in sales from $18million to $25 million but it needs an additional $500000 ofcurrent assets to support this expansion. Macrohard purchases underterms of 2/10 net 45 and currently pays on the 10th day takingdiscounts. The CFO is considering using trade credit to finance theadditional working capital required. Alternatively Macrohard canfinance its expansion with a one-year loan from its bank. The bankhas quoted the following alternative loan terms: