It is typically beneficial for companies to take advantage of early-payment discounts allowed on purchases made on credit. To see why this is the case, determine the effective rate of interest associated with not taking advantage of the early-payment discount for each of the following situations. Assume in each case that payment is made on the 30 th day of the billing cycle. Required: 1. What is the opportunity cost of not taking advantage of the discount associated with purchases made under the following terms: 2/15,n/30? 2. What is the opportunity cost of not taking advantage of the discount associated with purchases made under the following terms: 1/15,n/30? 3. To motivate managers to take early-payment discounts, what is the appropriate accounting treatment for purchase discounts