You have been hired as the Chief Financial Officer of KimCO, a rapidly growing firm. KimCO must continually go to the bank to increase its line of credit as cash is tight. The line of credit carries a 12% interest charge. KimCO uses a discount rate of 18% in its Net Present Value calculations. You have been paying your suppliers in 30 days to avoid being late and to maintain your credit rating. KimCO buys most of its supplies from CarCO, which offers terms of 2/10 net 30. Should KimCO increase your line of credit even more so that KimCO can take advantage of the discount being offered? Prove your answer by calculating the effective rate of interest (EAR) you are foregoing by not taking the discount and comparing it to the bank rate and your internal discount rate.