North Folk Dairy has an unused bank revolving credit of $50 million. North Folk Dairy’s vendor provided an invoice in the amount of $100,000 with payment terms of 2/10, net 45. Compute the nominal cost of not taking the cash discount of 2/10, net 45. If North Folk Dairy does not have sufficient internal funds, what is an option for North Folk Dairy to obtain funds to take the discount?

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