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Each year you buy $350,000 of goods from Supplier Sam. He normally lets you take 30 days to pay him. Recently, hes offered you terms

Each year you buy $350,000 of goods from Supplier Sam. He normally lets you take 30 days to pay him. Recently, hes offered you terms of 2/10 net 30, meaning that youll get a 2% discount if you pay within 10 days. Your risk-adjusted cost of capital is 13.75% and your marginal tax rate is 34%. What is the present value of each alternative? Do you take the discount? Use a 365-day year.

Please, answer with details on the calculations. Im asking this for the 2nd time because I cant figure out the step by step of whoever answered the first time.

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