Financing alternativeeffective costtrade credit1781simple, Ask an Expert

Finance

Financing Alternative	Effective Cost
Trade Credit	17.81%
Simple Interest Loan	13.02%
Add-On Interest Loan	14.04%

1) Based solely on their effective costs, which financing option should a firm choose?

a) a) Add-on interest bank loan

b) b) Use supplier trade credit

c) c) Simple interest bank loan

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9863363

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