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Royal Distributors has an ongoing offer of paying for purchases with a credit term of 2/10, net 45 . The owner never took that credit

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Royal Distributors has an ongoing offer of paying for purchases with a credit term of 2/10, net 45 . The owner never took that credit and always paid in 40 days so that she is sure that the payments are never late. Calculate the annual cost of not taking the cash discount. [Show detailed calculation with formula]

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