Your firm purchases goods from its supplier on terms of 22, Financial Management

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Your firm purchases goods from its supplier on terms of 22

Your firm purchases goods from its supplier on terms of 2.2/ 15, net 30.

a. What is the effective annual cost to your firm if it chooses not to take the discount and makes its payment on day 30?

b. What is the effective annual cost to your firm if it chooses not to take the discount and makes its payment on day 40?

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Financial Management: Your firm purchases goods from its supplier on terms of 22

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