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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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
