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A company can pay their supplier by check or by electronic transfer. If the difference between the value date of the payment methods is 4

A company can pay their supplier by check or by electronic transfer. If the difference between the value date of the payment methods is 4 days from the company s perspective, what discount should the supplier offer them to get the company to pay on the same day as they did when they paid by check (rounded to the nearest 100th percent)? Assume no difference in the cost of the payment method, an opportunity cost of 8%, and float neutrality.

A. 2.00% B. 0.09% C. 0.87% D. 0.02%

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