Supplier	Credit Terms
A	1/15 net 40
B	2/10 net 30
C	2/15 net 35

ProntoPak Rapid Delivery Service is analyzing the credit terms of each of three suppliers, A, B, and C. (a) Determine the approximate cost of giving up the cash discount. (b) Assuming the firm needs short-term financing, recommend whether or not the firm should give up the cash discount or borrow from the bank at 10 percent annual interest. Evaluate each supplier separately (c) What is "stretching accounts payable"? What effect does this action have on the cost of giving up a cash discount?