Question: Dash Construction needs to borrow $200,000 for 45 days in order to take advantage of the cash discount of 3/10, n55 offered by a supplier.

Dash Construction needs to borrow $200,000 for 45 days in order to take advantage of the cash discount of 3/10, n55 offered by a supplier.
Dash Construction can borrow the funds from a bank with an interest payment of $5,000 at the of the loan. Should management borrow the funds from the bank to take advantage of the discount?

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