Problem $8-2($Algo$)$ Cash discount decision $[$LO$8-1]$

Regis Clothiers can borrow from its bank at $12$ percent to take a cash discount. The terms of the cash discount are $2/15,$ net $50.$

a$.$ Compute the cost of not taking the cash discount.

Note: Use a $360-$day year. Do not round intermediate calculations. Input your final answer as a percent rounded to $2$ decimal places.

Cost of not taking a cash discount

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b$.$ Should the firm borrow the funds?

Yes

No