Block Ltd$\text{'}$s main supplier offers them credit terms of $2/10$ net $30.$ They recently purchased $$30,000$ worth of raw material and, as the company does not have sufficient cash to take advantage of the discount, they are considering borrowing the funds from one of their banks in order to do so$.$

BCIC is willing to lend the company the funds for $30$ days at a cost of $$400.$

Bank of Montreal is offering a discounted loan for $30$ days at a cost of $$380.$

Required: Advise the company on what action they should take. $(12$ marks$)$