Hanson Hardware, Inc. offers terms of 1/10, net 30. Assume that a year has 360 days, as is used in our WCM textbook. What annual opportunity cost rate is realized when a customer takes the 1% discount that Hanson Hardware offers on credit sales?

1. What annual opportunity cost rate would apply if Hanson Hardware were to change its credit terms to each of the following options:

1. 2/10, net 30.

1. 1/10; net 45.

1. 1/15, net 30.