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Exercise 10: Changing payment terms (trades payable) A company buy $2 million of goods each year. The treasurer of the company thinks it can delay

Exercise 10: Changing payment terms (trades payable)

A company buy $2 million of goods each year. The treasurer of the company thinks it can delay paying bills up to 45 days without jeopardizing its relationship with suppliers. The companys accounts payable are $165,000.

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If the company defers paying its bills to 45 days, how much financing would it be able to obtain from that source?

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