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Stevens Company presents the following information:

Current annual credit sales:	$24,000,000
Collection period:	3 months
Terms:	net/30
Rate of return:	18%

The company is considering offering a 4/10, net/30 discount. It anticipates that 30 percent of its customers will take advantage of the discount. The collection period is expected to decrease to 2 months. Should the discount policy be implemented?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9799622

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