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Question 16 (1 point) What effective interest rate is charged to a purchaser receiving terms of 5/10, net 90 if the purchaser avoids the discount
Question 16 (1 point) What effective interest rate is charged to a purchaser receiving terms of 5/10, net 90 if the purchaser avoids the discount and pays in 90 days? 1) 20.00% 2) 22.81% 3) 24.93% 4) 26.37% Question 17 (1 point) What is the INVENTORY CONVERSION PERIOD for a firm with an annual sales of $8 million, $1.5 million in average inventory, and a cash conversion cycle of 75 days? 1) 6.56 days O2) 18.75 days 3) 53,33 days 4) 68.44 days Question 18 (1 point) How high can accounts receivable be allowed to grow before the firm's receivables period exceeds 50 days if annual sales equal $5 million and the cash conversion cycle equals 75 days? That is solve for average accounts receivable. 1) $342.466 2) $684,932 3) $1.027,397 4) $1,712,329
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