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DP ltd . offers standard credit terms of 6 0 days . Its cost of short term borrowings is 1 6 % p . a

DP ltd. offers standard credit terms of 60 days . Its cost of short term borrowings is 16% p.a . Determine whether 2.5% discount should be offered for payment of 7 days to customers who normally pay after 60 days ,80 days and 105 days.

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