Assume a trade creditor offers you terms of 210 net 40 what


Assume a trade creditor offers you terms of 2/10 net 40.

A) What is the effective annual cost of forgoing the discount?

B) If the firm=s bank charges 14% on loans, would you take the trade credit discount?

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Financial Management: Assume a trade creditor offers you terms of 210 net 40 what
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