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A supplier offers her client trade credit with the terms (1/15, n/105) on an invoice amount of $20,000. What is the annualized opportunity cost of
A supplier offers her client trade credit with the terms (1/15, n/105) on an invoice amount of $20,000. What is the annualized opportunity cost of not paying back early? (enter as percentage) You could get inventory financing from another source for 5.30%. Thus you should choose to Take the full term to pay the supplier.
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