Regis Clothiers can borrow from its bank at 13 percent to take a cash discount. The terms of the cash discount are 2/20, 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.)

b. Should the firm borrow the funds?

• Yes

• No