Question
Mary's inc. is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a loan. They
Mary's inc. is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a loan. They owe the supplier $18,637, and they can borrow the money from Bank B, which has offered to lend the firm $18,637 for 1 months at an APR of 14% (compounded). The loan has a 2.74% loan origination fee.
What would be the cost for Company A if they decide to borrow from Bank B?
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge
9th edition
290-1259222138, 1259222136, 978-1259222139
