Johannesburgs MouthWatering Restaurant has approached you for assistance in determining whether it should take the 1/10 net

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Johannesburg’s “MouthWatering” Restaurant has approached you for assistance in determining whether it should take the 1/10 net 30 trade discount terms offered by its main food supplier. the restaurant currently has invested excess liquidity in marketable securities earning an 8 per cent average annual rate of return.

Required:
Conduct an analysis to demonstrate whether the Mouth Watering Restaurant should take the trade discount offered.

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