Question
Company X sells on a 1/30, net 60 basis. Customer Y buys Xs goods invoiced at $100,000. Commercial Banks deposit rate is 3% per year.
Company X sells on a 1/30, net 60 basis. Customer Y buys Xs goods invoiced at $100,000. Commercial Banks deposit rate is 3% per year.
Based on the information above, please choose the most convincing statement.
Answer: [ A ]
a.It is favorable for Y to make a full payment to X within 30 days
b.It is favorable for Y to delay payment up to 60 days
c.Y should pay interest if overdue 30 days
d.It depends on storing cost of inventory
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Fundamentals Of Futures And Options Market
Authors: John C. Hull
6th Edition
0132242265, 9780132242264
