Your firm just purchased $10,000 in goods from your supplier on trade credit terms of 0.5/10 net 60. Your opportunity cost of funds is 10 percent. On which day should you pay?

The supplier from problem above has decided to sweeten the pot to entice early payment. They are now offering a 2 percent discount if the payment occurs on delivery. Otherwise, you receive net 60 days. What should you do under these terms?