Simmons Corporation can borrow from its bank at $14$ percent to take a cash discount. The terms of the cash discount are $1\mathrm{.}5/20,$ net

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?

No

Yes