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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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