Little Kimi Clothiers can borrow from its bank at $18$ percent to take a cash discount. The terms of the cash

discount are $2/18$ net $55.$

a$.$ Compute the cost of not taking the cash discount. $($Use $365$ days in a year. Do not round the

intermediate calculations. Round the final answer to $2$ decimal places.$)$

Cost of not taking a cash discount

b$.$ Should the firm borrow the funds?

Yes

No