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Regis Clothiers can borrow from its bank at 20 percent to take a cash discount. The terms of the cash discount are 2/18, net 45.

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Regis Clothiers can borrow from its bank at 20 percent to take a cash discount. The terms of the cash discount are 2/18, net 45. 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 os a percent rounded to 2 decima places. b. Should the firm borrow the funds? Yes No

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