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1 ) Suppose Taylor s guitars is considering whether it wants to pay its distributor early to receive a cash discount. Its terms are 2

1) Suppose Taylors guitars is considering whether it wants to pay its distributor early to receive a cash discount. Its terms are 2/10 net 50. Because Taylors doesnt have the funds to cover that expense now, it would have to take out a short-term bank loan with an effective rate of 15%. What is the cost of failing to take the cash discount for Tayler's guitars?

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