3. Takagi Toyota. Takagi Toyota buys its cars from Toyota Motors-USA, and sells them to U.S. cus- tomers. One of its customers is Green Transport, at car rental firm that buys cars from Takagi Toyota at a wholesale price. Final payment is due to Takagi Toyota in six months. Green Transport has bought $200,000 worth of cars from Takagi, with a cash down payment of $40,000 and the balance due in six months without any interest charged as a sales incen- tive. Takagi Toyota will have the Green Transport receivable accepted by Alliance Acceptance for a 2% fee, and then sell it at a 3% per annum discount to Wells Fargo Bank.

a. What is the annualized percentage all-in-cost to Takagi Toyota?

b. What are Takagi Transport's net cash proceeds, including the cash down payment?