( Joanne Germano works in an accounts payable department of a major retailer. She has attempted to convince her boss to take the discount on the

2/15 net 90

credit terms most suppliers offer, but her boss argues that giving up the

2%

discount is less costly than a short-term loan at

8%.

Prove to whoever is wrong that the other is correct.

(Note:

Assume a 365-day year.)Note:

Assume a 365-day year.)The cost of giving up the cash discount is

(Round to two decimal places.)

Part 2

Who is right in this case? (Select the best answer below.)