Question
A company is currently offering terms of 1/5, Net 45 and they have an average credit sale of $125,000 and an opportunity cost of capital
A company is currently offering terms of 1/5, Net 45 and they have an average credit sale of $125,000 and an opportunity cost of capital of 9.5%. What is the net benefit (or cost) to the company if one of their buyers takes the discount terms?
- Benefit of $36.26
- Cost of $36.26
- Benefit of $26.36
- Cost of $26.36
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International Business The Challenges Of Globalization
Authors: John J. Wild, Kenneth L. Wild
9th Edition
0134729226, 978-0134729220
