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You own a manufacturing business and your existing supplier offers credit terms of 1.5/20, net 80 and doesn't charge late payment fee. A new supplier
You own a manufacturing business and your existing supplier offers credit terms of 1.5/20, net 80 and doesn't charge late payment fee. A new supplier wanting your business is willing to offer terms 2/10, net 45 . And no late payment fee. You can borrow money at an annual rate of 10 percent. For an invoice of bdt 10,000, decide which supplier you should purchase from, and if you should take cash discount or not
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