Regis Clothiers can borrow from its bank at 19 percent to take a cash discount. The terms of the cash discount are 214, net 55.

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.) 

Answer is complete but not entirely correct.

Cost of not taking a cash discount 17.39%

b. Should the firm borrow the funds? 

         No          Yes