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A company wants to offer a discount to their customers for early payment. The current terms of sale are net 60 and they want to

A company wants to offer a discount to their customers for early payment. The current terms of sale are net 60 and they want to figure out a discount rate for payment on day 10 at which they will be indifferent between the two payment dates. If the companys cost of capital is 10%, what is the proper discount rate to offer?

answer choices:

1.25%

1.35%

1.15%

1.05%

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