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Your firm purchases goods from its supplier on terms of 1/15, net 40. a. What is the effective annual cost to your firm if it

Your firm purchases goods from its supplier on terms of 1/15, net 40.

a. What is the effective annual cost to your firm if it chooses not to take advantage of the trade discount offered?

b. What would be the effective annual cost if the firms had terms of 2/15, net 50?

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