Problemif a firm buys on trade credit terms of 515 net 60, Ask an Expert

Finance

Problem:

If a firm buys on trade credit terms of 5/15, net 60 and decides to forgo the trade credit discount and pay on the net day,

Required:

Question 1: What is the annualized cost of forgoing the discount (assume a 360-day year)?

Note: Please provide reasons to support your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149384

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