b

Exercise 5-13 (Algo) Cash discounts--ROI LO 5 Annual credit sales of Nodok Co, total $3297 million. The firm glves a 1.25% cash discount for payment within 10 days of the invoice date; 85% of Nodok's accounts receivable are paid within the discount period Required: a. What is the total amount of cash discounts allowed in a year? (Enter your answer in millions rounded to 2 decimal places.) Answer is complete and correct. 350 million Total amount b. Calculate the approximate annual rate of return on investment that Nadak po's cash discount terms represent to customers who take the discount. (Assume a credit period of 30 days and 360-days year). (Round intermediate calculations to 2 decimal places. Enter your answer as a percentage rounded to 1 decimal place (1... 32.1).) Answer is complete but not entirely correct. % ROI 45.0