LGO P15-4 Cash discount versus loan Joanne Germano works in an accounts payable depart- ment of a major retailer. She has attempted to convince her boss to take the discount on the 1/15 net 65 credit terms most suppliers offer, but her boss argues that giving up the 1% discount is less costly than a short-term loan at 7%. Prove to whoever is wrong that the other is correct. (Note: Assume a 365-day year.)