Determine the annual financing cost of forgoing the cash


Determine the annual financing cost of forgoing the cash discount under each of the following credit terms:

a. 2/10, net 60

b. 1½ /10, net 60 

c. 2/30, net 60

d. 5/30, net four months (assume 122 days)

e. 1/10, net 30

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Finance Basics: Determine the annual financing cost of forgoing the cash
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