Cash Discounts Suppose a firm makes purchases of $5.84 million per year under terms of 1/10, net 30, and takes discounts. Assume a 365-day year. a. What is the average amount of accounts payable net of discounts? (Assume the $5.84 million of purchases is net of discounts that is, gross purchases are $5,898,989.90, discounts are $58,989.90, and net purchases are $5.84 million.) Do not round intermediate calculations. Round your answer to the nearest dollar. b. Is there a cost of the trade credit the firm uses? I. The cost of the trade credit is $480,000. II. There is no cost of trade credit at this point. The firm is using "Free trade credit. -Select- c. If the firm did not take discounts but it did pay on the due date, what would be its average payables? Do not round intermediate calculations. Round your answer to the nearest dollar. If the firm did not take discounts but it did pay on the due date, what would be the cost of this nonfree trade credit? Do not round intermediate calculations. Round your answers to two decimal places Nominal cost: Effective cost: d. What would be the firm's cost of not taking discounts if it could stretch its payments to 35 days? Do not round intermediate calculations. Round your answers to two decimal places. Nominal cost: Effective cost