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Stamford Automotive Inc. of Connecticut agrees to sell specialized automotive parts to Pyeonghwa Motors of Korea. Because the two companies have never done business with
Stamford Automotive Inc. of Connecticut agrees to sell specialized automotive parts to Pyeonghwa Motors of Korea. Because the two companies have never done business with each other, Stamford Automotive requires a banker's acceptance as payment for the $ order. The banker's acceptance carries a commission per annum and payment is to be received in months. Stamford Automotive. can choose to sell the bankers acceptance to an investor at a discount rate of per annum. What is the total dollars Stamford Automotive would receive if the firm takes payment today?
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