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Loma Linda Hospital (LLH) buys $12,000,000 in Personal Protective Equipment (PPE) each year from Silver Spring Medical Supply (SSMS), which offers LLH terms 2.5/15, net

Loma Linda Hospital (LLH) buys $12,000,000 in Personal Protective Equipment (PPE) each year from Silver Spring Medical Supply (SSMS), which offers LLH terms 2.5/15, net 30. Currently, LLH is paying the supplier the full amount due on Day 30, but it is considering taking the discount, paying on Day 15 and replacing the trade credit with a bank loan that has an 8 percent annual cost. Assume 360 days per year

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