Final answer:
The question pertains to calculating the annualized cost of not taking a cash discount for a payment made later. However, specific discount terms are missing, which are crucial for calculating the correct percentage cost. A firm would typically incur a `higher cost` for delaying payment and not capitalizing on the discount.
Step-by-step explanation:
The question asks about the cost in percentage terms for a firm not taking a cash discount and paying the bill later than the discounted period. To answer this, one would need to understand the terms of the cash discount offered and calculate the annualized cost of forgoing the discount. This involves calculating the percentage discount lost, considering how much earlier the payment could have been made had the discount has been taken, and annualizing that cost to understand it in terms of an annual interest rate.
Unfortunately, the question lacks the specific details of the cash discount terms, such as the discount percentage and the time frame within which the discount is applicable (e.g., 2/10 net 30, which means a 2% discount is available if payment is made within 10 days, with the full payment due in 30 days). With such information, we could have proceeded with the calculations. In a real-world example, not taking the offered discount and paying on the 72nd day instead of the 17th day would generally mean that the firm is incurring additional costs, which translates into a higher effective annual interest rate for the money owed during that time.