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Assuming a 365-day year, which is better: (1) taking out a 7.5% (annualized) short-term loan in order to take the cash discount on invoice terms
Assuming a 365-day year, which is better: (1) taking out a 7.5% (annualized) short-term loan in order to take the cash discount on invoice terms of1/10 net 60, or (2) giving up the cash discount on those invoice terms? Do the calculation to prove your point.
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