Because of a temporary cash shortage, Balister Company requested an extension of time on its purchases on account. Balister’s regular vendor, Custom Products, requires that a 12% note be signed for any extension of time over one month. Balister usually needs 90 days from time of purchase to time of payment. Because of the extra costs for interest expense, Balister has been exploring other vendor options. Another vendor, Nagano Supplies, will sell merchandise on account with credit terms of net due in 90 days. For the same quantity and brand of merchandise, Nagano Supplies charges 2.5% more than Custom Products. Since Nagano Supplies offers 90 days credit terms without any interest charges and the merchandise is only 2.5% higher than that from Custom Products, Balister’s purchasing manager, Rania Nasser, has decided to buy the merchandise from Nagano. When asked why she is buying from the company with costs 2.5% higher, she said, “A 2.5% higher price is better than the 12% interest we would have to pay Custom Products.” Do you agree with Ms. Nasser? Explain.