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ABC Co. is considering giving a 2% cash discount to its customers who pay within 10 days. (The firm currently offers no discount.) If it

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ABC Co. is considering giving a 2% cash discount to its customers who pay within 10 days. (The firm currently offers no discount.) If it institutes this policy, it is likely that 1ABC will experience a net use of funds. II The buyers will be able to reduce their cost of goods sold. Oll Buyers who do not take the discount will be using an expensive source of financing. IV ABC will find that its average collection period will increase. A) I and Ill only B) I and IV only C) Il and ill only D) II, III and IV only O EL II, III and IV

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