Question
Question 19 Zoro Inc. purchased a new machine on October 20, 2010 for $1,000,000 on credit. The supplier has offered Zoro terms of 2/10, n/45.
Question 19
Zoro Inc. purchased a new machine on October 20, 2010 for $1,000,000 on credit. The supplier has offered Zoro terms of 2/10, n/45. Zoros bank is currently lending funds at 8 percent. IF Zoro pays this invoice within the DISCOUNT period, on what exact date should they electronically transfer the funds to the supplier?
| A. October 20 (the date of the invoice) | ||
| B. October 21 | ||
| C. October 22 | ||
| D. October 30 | ||
| E. November 24 |
Zoro Inc. purchased a new machine on October 20, 2010 for $1,000,000 on credit. The supplier has offered Zoro terms of 2/10, n/45. Zoros bank is currently lending funds at 8 percent. IF Zoro pays this invoice within the DISCOUNT period, what is the exact amount they will pay the supplier?
| A. $20,000 | ||
| B. $920,000 | ||
| C. $980,000 | ||
| D. $1,000,000 | ||
| E. $1,020,000 |
Question 21
Zoro Inc. purchased a new machine on October 20, 2010 for $1,000,000 on credit. The supplier has offered Zoro terms of 2/10, n/45. Zoros bank is currently lending funds at 8 percent. IF Zoro elects NOT to pay this invoice within the DISCOUNT period, what is the exact amount they should pay the supplier?
| A. $20,000 | ||
| B. $920,000 | ||
| C. $980,000 | ||
| D. $1,000,000 | ||
| E. $1,020,000 |
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Foundations Of Financial Management
Authors: Stanley Block
8th Canadian Edition
0070965447, 9780070965447
