Question
SSD corp needs an additional fund of RM1,200,000.00 to finance its short-term project. The project will take eight (8) months to be completed. The company
SSD corp needs an additional fund of RM1,200,000.00 to finance its short-term project.
The project will take eight (8) months to be completed. The company has the following
alternatives to choose from. Calculate the effective cost for each of the following alternatives.
REQUIRED:
Compute the Effective Interest Rate (EIR) for each of the alternatives:
Trade credit
Forego a trade credit with favourable term of 3/15, net 50
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The Handbook Of Credit Portfolio Management
Authors: Greg Gregoriou, Christian Hoppe
1st Edition
0071598340, 978-0071598347
