Computing cost of cash discount
Question:
Compute the cost of not taking the following cash discounts.a. 2/10, net 50.b. 2/15, net 40.c. 3/10, net 45.d. 3/10, net 180.
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Automatic Machinery is being offered a 2/10, net 50 cash discount. The firm will have to borrow the funds at 12 percent to take the discount.
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