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Smith's Irrigation Supply, Inc., purchases PVC pipe from the manutacturer under credit terms of 3 1 5 , n 3 0 . Assuming it buys
Smith's Irrigation Supply, Inc., purchases PVC pipe from the manutacturer under credit terms of Assuming it buys $ day, days per year, answer the following:
a If Smith's pays on the tenth day, how much is its total discount for the year?
b Assume instead that Smith's forgoes the early payment discount for the extra financing it receives. What is the effective interest rate cost of the forgone early discount?
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