Yr firm purchases goods from its supplier on terms of 13 , Financial Management

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Yr firm purchases goods from its supplier on terms of 13

Your firm purchases goods from its supplier on terms of 1.3 / 15, net 40

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

The effective annual cost is...... %. (Round to two decimal places.)

b) What is the effective annual cost to your firm if it chooses not to take the discount and makes its payment on day 50?

The effective annual cost is........... %. (Round to two decimal places.)

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Financial Management: Yr firm purchases goods from its supplier on terms of 13

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Financial Management: Yr firm purchases goods from its supplier on terms of 13

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