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The firm offers a Net 30 customer cash discount of 2/10. Suppose the customer order is for $1000, and the firm can invest the funds

  1. The firm offers a Net 30 customer cash discount of 2/10. Suppose the customer order is for $1000, and the firm can invest the funds received from the customer on a short-term investment, what is the minimum effective annual rate the investment has to offer for the cash discount to be worthwhile to the firm?

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