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Howes Inc. purchases $4,562,500 in goods per year from its sole supplier on terms of 1/20, net 40. The firm actually pays on day 48.

Howes Inc. purchases $4,562,500 in goods per year from its sole supplier on terms of 1/20, net 40. The firm actually pays on day 48. If the firm receives a bank offer of 13% with quarterly compounding, should the firm borrow the bank loan and take the discount or continue to pay at day 48? Please explain.

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