The expression 7/10, net 45 means that the customers receive a 7% discount if they pay within
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Question:
The expression "7/10, net 45" means that the customers receive a 7% discount if they pay within 10 days; otherwise, they must pay in full within 45 days.
What would the seller's cost of capital have to be in order for the discount to be cost justified?
A. 75%
B. 73%
C. 69%
D. 70%
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