Regis Clothiers can borrow from its bank at 16 percent to take a cash discount. The terms of the cash discount are 2/21, net 60. 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 b. Should the firm borrow the funds?

Regis Clothiers can borrow from its bank at 16 percent to take a cash discount. The terms of the cash discount are 2/21, net 60. 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. b. Should the firm borrow the funds? Yes No