8. Alcoa Inc purchases $3,200,000 in goods per year from its sole supplier on terms of 5/20 net 90. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its non-free trade credit (Assume a 365-day year)?

Group of answer choices

30.66%

21.90%

none of the answers is correct

82.21%

25.09%