Question
A company is currently offering terms of 1/10 net 45 to its customers. If the average invoice is $200,000, and the company's cost of capital
A company is currently offering terms of 1/10 net 45 to its customers. If the average invoice is $200,000, and the company's cost of capital is 8%, would the company be better off if their customers take the discount or not? (Show all work) Group of answer choices No. The seller is better off by $480 if the buyers pay on Day 45 Yes, because the seller is better off by about $580 if the buyers take the discount. No. The seller is better off by $580 if the buyers pay on Day 45 Yes, because the seller is better off by about $480 if the buyers take the discount.
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