Computing annual rate of return on investment by discoumt, Accounting Basics

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Computing annual rate of return on investment by discoumt

Q1) Compute suitable annual rate of return on investment of following cash discount terms

1. Determine the annual rate of return on investment? Use 360 day year in your computations(use decimal points)

2. Compute annual rate of return on investment? Use 360 day period

3. Which of the terms 1-3 part is not probable to be significant incentive to customers to pay promptly

(a)1/15, net 30

(b)2/10, net 60

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Accounting Basics: Computing annual rate of return on investment by discoumt

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Accounting Basics: Computing annual rate of return on investment by discoumt

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