Question
. Your companys primary supplier has decided to change its credit terms from 1/10 net 60 to 2/10 net 30. Assuming that you can borrow
. Your companys primary supplier has decided to change its credit terms from 1/10 net 60 to 2/10 net 30. Assuming that you can borrow from the bank at a stated interest rate of 9.5%, which of the following statements is true?
a) Your company shouldnt take the discount under the new terms; you did take the discount under the old terms.
b) Your company should take the discount under the new terms; you didnt take the discount under the old terms.
c) Your company took the discount under the old terms and will continue to do so with the new terms.
d) Your company shouldnt take the discount under either set of terms.
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