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Question 4 (7 marks) (Note this question is from the Week 8 Tutorial) Explain the trade credit facility provided by some companies to their customers

Question 4 (7 marks) (Note this question is from the Week 8 Tutorial) Explain the trade credit facility provided by some companies to their customers that allow them to manage their day-to-day liquidity situation and calculate the opportunity cost of an invoice that specifies the following conditions, as shown below (a. c.): a) conditions: 1.25/10, n/30. b) conditions: 1.25/10, n/60. c) conditions: 1.5/10, n/60.

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