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Rocky Inc. can buy its inventory from any of four suppliers all of which offer essentially the same pricing and quality. Their credit terms, however,

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Rocky Inc. can buy its inventory from any of four suppliers all of which offer essentially the same pricing and quality. Their credit terms, however, vary considerably as follows: A 2/10, net 30 B 3/5, net 20 C 1/20, net 45 D 3/5, net 90 A). Calculate the implied interest rate associated with each policy. Assume a 365-day year. B). If Rocky buys some material from each vendor, which discounts should it take and which should it forego if it pays 18% for working capital financing? Why

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