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The North County Publishing Company has provided the following data: Annual credit sales: $10 million Average collection period: 60 days Terms: Net 30 Interest Rate:
The North County Publishing Company has provided the following data: Annual credit sales: $10 million Average collection period: 60 days Terms: Net 30 Interest Rate: 10% North proposes to offer a discount policy of 2/10, net 30. It anticipates that 50 percent of its customers will take advantage of this new policy. As a result, the collection period will be reduced to 30 days. Should North offer the new credit terms?
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