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6. If a company is given credit terms of 2/10, n/30, it should recognize that the supplier is desperate for cash and withhold payment until
6.
If a company is given credit terms of 2/10, n/30, it should
recognize that the supplier is desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.
pay within the discount period and recognize a savings.
hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during this time.
pay within the credit period but don't take the trouble to invest the cash while waiting to pay the bill.
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