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Question 3 (7 marks) a) Explain the credit facility provided by some companies to their customers that allows them to manage their day-to-day liquidity situation

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Question 3 (7 marks) a) Explain the credit facility provided by some companies to their customers that allows them to manage their day-to-day liquidity situation (4 marks) ANSWER a): b) Calculate the opportunity cost of an invoice that specifies the following conditions, as shown below: a) conditions: 2.21/10,n/40. (1 mark) b) conditions: 2.5/10,n/35. (1 mark) c) conditions: 2.21/20,n/45. (1 mark)

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