=+P164 Cash discount versus loan The Wood Connection decides to offer cash discounts to its regular credit

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=+P16–4 Cash discount versus loan The Wood Connection decides to offer cash discounts to its regular credit customers, provided that the credit customers have a proven track record of on-time payment. The Wood Connection is offering Monkey Suppliers a discount on its credit purchases. The credit term offered is 2/10 net 60. Should Monkey Suppliers take the discount if a short-term loan can be obtained at 9%?

(Note: Assume a 365-day year.)

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Principles Of Managerial Finance

ISBN: 9781292261515

15th Global Edition

Authors: Chad J. Zutter, Scott Smart

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