Problem 8-3 Cash discount decision (LO8-1] Simmons Corp. can borrow from its bank at 20 percent to take a cash discount. The terms of the cash discount are 2.5/11, net 50. a. Compute the cost of not taking the cash discount. (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 % b. Should the firm borrow the funds? O No O Yes