c. Yes.

Sole Mates should take advantage of 1/10, n/30 purchase discounts, even if it must borrow
money for a short period of time at an annual rate of 11%. By taking advantage of the discount,
the company saves 1% by making payment 20 days early. At an interest rate of 9% per year, the
bank charges only 0.4% interest over a 20-day period (9%  20 365 = 0.4%). Thus, the cost of passing
up the discount is greater than the cost of short-term borrowing.