Question
1) Green Moose Industries buys most of its raw materials from a single supplier. This supplier sells to Green Moose on terms of 3/15, net
1) Green Moose Industries buys most of its raw materials from a single supplier. This supplier sells to Green Moose on terms of 3/15, net 30.
a)The cost per period of the trade credit extended to Green Moose is ( 3.09%/3.77%/2.72%/3.21%) (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.).
b)Green Mooses trade credit has a nominal annual cost of (93.24%/67.67%/75.19%/78.20%) , assuming a 365-day year. (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.)
c)If Green Moose Industriess supplier shortens its discount period to five days, this will (Increase/Decrease) the cost of the trade credit.
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