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15.2-25} Ashley's Delivery Service is analyzing the credit terms ofeaeh ofthree suppliers, A, B, and C. Supplier Credit Terms A U15 net 40 B Efl

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15.2-25} Ashley's Delivery Service is analyzing the credit terms ofeaeh ofthree suppliers, A, B, and C. Supplier Credit Terms A U15 net 40 B Efl net 30 C ENS net 35 {a} Determine the approximate cost ofgiving up the cash discount. (b) Assuming the rm needs short term nancing, recommend whether or not the rm should give up the cash discount or borrow from the bank at 10 percent annual interest. Evaluate each supplier separately

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