problem: Delta Industries purchases on terms of 2/10, net 30, but generally does not pay until 40 days after the invoice date. The company purchases $1,080,000 net in materials per year. [Use a 360 day year] Determine the effective annual cost of not taking the discount?
[A] 25.4%
[B] 24.7%
[C] 27.4%
[D] 26.5%
[E] 23.5%