1. Dirtmovers is a small provider of landscape services located in Southern Vermont. As the season winds down, the service manager is examining the companys equipment stock to determine what if anything requires replacement. After review, she determines that she will need to order 4 commercial leaf blowers and 3 hand mowers. This will total $5,000. Her supplier has been great to work with and, because of the strength of their relationship, offers Dirtmovers a 5% discount on invoices paid within 30 days. Otherwise, they require payment in 120 days. Dirtmovers has a corporate credit card that carries an annual percentage rate of 16%. It also has a small bank line of credit with an annual percentage rate of 8%.

1. What is Dirtmovers nominal cost of trade credit from their supplier?
2. Should they take the discount and pay within 30 days? Defend your answer.
3. Dirtmovers routinely pays its supplier in 150 with no adverse consequences. What is Dirtmovers nominal cost of trade credit at 150 days?
4. Does paying in 150 days change your answer? Pls, explain why or why not.