Your firm is offered credit terms of 1/10, net 40. what is the effective annual interest rate on this arrangement? Assume 365 days per year.

A. 11.56%

B. 14.16%

C. 12.17%

D. 10.95%

E. 13.01%

Cat supplies offers terms of 1/10, net 30. The discount is taken by 66 percent of customers. what is the company's average collection period?

A. 16.80 days

B. 15.57 days

C. 20.00 days

D. 21.73 days

E. 18.40 days

Harper Motors sells 27 cars per month at an average price of $23,960. The carrying cost per car is $134 and the fixed order cost is $682. How many orders should the company place per year?

A. 5.64 orders

B. 27.00 orders

C. 8.46 orders

D. 16.58 orders

E. 57.43