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Problem B. Stevens Company presents the following information: Current annual credit sales: Collection period: Terms: Rate of return: $24,000,000 3 months net/30 18% The company
Problem B. Stevens Company presents the following information: Current annual credit sales: Collection period: Terms: Rate of return: $24,000,000 3 months net/30 18% The company is considering offering a 4/10, net/30 discount. It anticipates that 30 percent of its customers will take advantage of the discount. The collection period is expected to decrease to 2 months. Should the discount policy be implemented? Support your answers with computations. ( 10 pts)
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