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Howes Inc. purchases $4,562,500 in goods per year from its sole supplier on terms of2/15, net 50. If the firm chooses to pay on time
Howes Inc. purchases $4,562,500 in goods per year from its sole supplier on terms of2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is theeffective annual percentage cost of its non-free trade credit? (Assume a 365-day year.)
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