Simmons Corp. can borrow from its bank at 17 percent to take a cash discount. The terms of the cash discount are 2.5/14, net 40. 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?

	No
	Yes