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A seller has offered credit terms of 2/5 net 60 to a customer that has agreed to immediately purchase 200 units at a sales price
A seller has offered credit terms of 2/5 net 60 to a customer that has agreed to immediately purchase 200 units at a sales price per unit of $100. Variable costs are $65 per unit and involve an immediate cash outflow. The seller has an annual opportunity cost rate of 7.3%. Based on this information, what is the present value of the net cash flows associated with the cash discount terms? Select one:
a. $6,580.42
b. $6,600.00
c. $13,000.00
d. $619,600.00
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