Include any excel formulas used to arrive at the answer.

(16-16) Trade Credit The Thompson Corporation projects an increase in sales from $1.5 million to $2 million, but it needs an additional $300,000 of current assets to support this expansion. Thompson can finance the expansion by no longer taking discounts, thus increasing accounts payable. Thompson purchases under terms of 2/10, net 30, but it can delay payment for an additional 35 dayspaying in 65 days and thus becoming 35 days past duewithout a penalty because its suppliers currently have excess capacity. What is the effective, or equivalent, annual cost of the trade credit