Lancaster Lumber buys $$8$ million of materials $($net of discounts$)$ on terms of $3/5,$ net $35,$ and it currently pays on the $5$th day and takes discounts. Lancaster plans to expand, which will require additional financing. Assume $365$ days in year for your calculations.

$1.$if Lancaster decides to forgo discounts, how much additional credit could it obtain?

$2.$What would be the nominal cost of the credit?

$3.$What would be the effective cost of the crit?If the t