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Use the following values to determine the present value savings from using optimal payment timing: Purchase of $10,000 Trade Credit Terms of 1/15 net 40

Use the following values to determine the present value savings from using optimal payment timing: Purchase of $10,000 Trade Credit Terms of 1/15 net 40 Discount rate of 8%

Select one:

a.

$45.53

b.

$86.91

c.

$100.00

d.

$132.44

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