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8. Alcoa Inc purchases $3,200,000 in goods per year from its sole supplier on terms of 5/20 net 90. If the firm chooses to pay
8. Alcoa Inc purchases $3,200,000 in goods per year from its sole supplier on terms of 5/20 net 90. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its non-free trade credit (Assume a 365-day year)?
Group of answer choices
30.66%
21.90%
none of the answers is correct
82.21%
25.09%
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