1. The big C is considering a change in its cash-only sales policy. The new terms of sale would be one month. The required return is 1.6 percent per month. Based on the following information, what is the cost of switching to the new policy?

	Current policy	New policy
Price per unit (RM)	800	800
Cost per unit (RM)	425	425
Unit sales per month	1,110	1,150

Select one:

A.

RM845,000

B.

RM735,500

C.

RM905,000

D.

RM615,000

2.

Suppose a company offers the credit term of 3/15 net 45. What is the implied interest rate a customer pays for the 30-day credit period when he/she does not take the cash discount?

Select one:

A.

3.093%

B.

5.093%

C.

2.040%

D.

4.040%