=+LG 1 LG 2 P16–6 Early payment discount decisions Brembo, an Italian automotive braking-systems supplier, has three alternative carbon ceramic suppliers, all of which offer different credit terms. Except for the different credit terms, their products are identical. The credit terms offered by these suppliers are shown in the following table. (Note:

Assume a 365-day year.)

Supplier Credit terms SGL Carbon 1/15 net 60 EOM Nordex 2/20 net 90 EOM Hexcel 2/10 net 90 EOM