Assume that IKO Ent has to purchase a Windows system and has approached two suppliers of the system. Supplier A offers a selling price of $72,000 with terms of 2.5/10 net 45, while Supplier B offers $75,000 with 3/15 net 60. Which supplier should IKO Ent purchase the system from if it cannot take advantage of the discount?

a. Buy from supplier A because it offers a lower selling price of $72,000

b. Buy from supplier B because it has a higher discount of $2250

c. Buy from supplier A because it has effective annual cost of 30.22%.

d. Buy from supplier B because it has effective annual cost of 28.02%.