corporate financial management

Q4. Essence Lavvy purchased a new machine on January 20th, 2019 for $1,000,000 on credit. The supplier has offered A&A terms of 2/10, net 50. The current interest rate the bank is offering is 20 percent. (Assume a 360-day year.) 1. Compute the cost of giving up cash discount. 2. Should the firm take or give up the cash discount