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4. What is the true (or effective) annual cost of offering a credit payment discount on terms of 2/8, 1/45?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 3P: What are the nominal and effective costs of trade credit under the credit terms of 3/15, net 30?

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Trade Credit

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4.
What is the true (or effective) annual cost of offering a credit payment discount on terms
of 2/8, n/45?

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