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Please answer the following question 3 QUESTION 3(a) Fruit of Malaysia Berhad is analyzing the credit terms of each of the two suppliers FAMMA and

Please answer the following question 3 image text in transcribed
QUESTION 3(a) Fruit of Malaysia Berhad is analyzing the credit terms of each of the two suppliers FAMMA and MARDIE Supplier Credit Terms FAMMA 1/15 net 40 MARDIE 2/10 NET 35 i. Find the cost of giving up the cash discount (4 marks) ii. Should the company give up the discount? (4 marks) QUESTION 3(b) Syarikat Rotigirl needs RM100,000 to purchase it new breadmaker. The company has the option to borrow from the following sources within 6 months Borrow from CII Finance: A discounted loan with 10 percent interest rate per annum Borrow from supplier; interest of 11% per annum paid at the end of maturity. Which source is the best option and why? (10 marks)

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