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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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