A supplier has offered your company a 2% discount for all bills that are paid 10 days after they are billed. The bills would normally be due 30 days after they are billed. A) What is the return on paying the bills early? B) If your company can barrow funds from a line of credit at a yield of 14%, is it financially attractive to pay the bills early? 37%, Yes 18.6%, Yes 37%. No O 18.6%, No

A supplier has offered your company a 2% discount for all bills that are paid 10 days after they are billed. The bills would normally be due 30 days after they are billed. A) What is the return on paying the bills early? B) If your company can barrow funds from a line of credit at a yield of 14%, is it financially attractive to pay the bills early? 37%, Yes 18.6%, Yes 37%, No 18.6%, No