Permas Jaya company purchased a new machine on August 2nd , 2021 for RM3000,000 on credit. The supplier has offered credit terms of 2/10, net 60. The current interest rate the bank is offering is 8% . (365 days a year ) 1. Compute the cost of giving up cash discount.

2. Should the firm take or give up the cash discount ? WHY? 3. The credit terms offered to a firm by its suppliers enable it to delay payment for its purchases . Sometimes a supplier will offer a discount for early payment. If a firm intends to take an early payment discount or chooses to give up the discount m is there any cost associated with these two options ?