Wendy Interior Design received four invoices with different credit terms. The manager needs to determine when the invoices, all dated March 25, need to be paid to avoid late-payment charges. A summary of the invoice credit terms are presented in the table. Assume a 365-day year.

a. For each set of credit terms, write the shorthand expression of the credit terms.
b. For each set of credit terms, calculate the number of days until full payment is due.
c. For each set of credit terms, calculate the cost of giving up the cash discount.
d. If the firm’s cost of short-term financing is 12%, should Wendy Interior Design give up the cash discount for each of the invoice credit terms presented in the table?

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Cash discount 2.0% 1.5 3.0 3.5 Cash discount period 15 days 10 275 15 Credit period 30 days 60 45 30 Beginning of credit period date of invoice end of month date of invoice end of month