10) Company A is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a loan. They owe the supplier $12,212, but the supplier will give them a 2.91% discount if they pay in the first 19 days (when the discount period expires). That is, they can either take the discount by paying in the first 19 days, or $12,212 in 2 month(s) when the net invoice is due. What would be the cost for the firm if they forgo the discount on its trade credit agreement, wait and pay the full $12,212 in 2 month(s)?

a) Company A is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a loan. They owe the supplier $14,647, and they can borrow the money from Bank B, which has offered to lend the firm $14,647 for 2 months at an APR of 12% (compounded). The loan has a 1.16% loan origination fee. What would be the cost for Company A if they decide to borrow from Bank B?