1. As noted in the case, Cartwright Lumbers rapid expansion has resulted in it carrying its payables For longer than it would like, effectively using its payables as an unintended form of financing. Part of the reason for soliciting this revolving loan is so that it can pay its suppliers promptly and take advantage of the 2% discount; 0 Assume that Cartwright Lumber currently extends its payables by around 40 days. If Mr. Cartwright pays within 10 days, he receives a 2% discount from his suppliers. Mr. Cartwright is therefore paying an implicit cost to for borrow money for 30 additional days; What is this cost on an annualized basis? {Use the 360 dayslyear convention. You may assume either a simple or compound rate convention, but if you use the simple convention make sure to say so.) 0 Assume instead that Mr. Cartwright is able to extend his payables all the way out to 55 days. What is this cost on an annualized basis? 0 Qualitatively, what implications does this have for the company if it is able to use the proceeds from bank financing to promptly pay its suppliers