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The normal credit terms offered by Hugill Ltd to its customers is payment 60 days from delivery and the issue of an invoice, both of
The normal credit terms offered by Hugill Ltd to its customers is payment 60 days from delivery and the issue of an invoice, both of which always occur on the same day At today's Board meeting, the directors are considering offering customers a 3% cash discount if they pay in 30 days. The company's bankers, MoneyCash charge Hugill Ltd overdraft interest at 24% per month. Consider a sales invoice of 2,000 is the company financially better or worse off by offering this discount, and by how much? Select one
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