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Your firm purchases goods from its supplier on terms of 2 / 15, net 35 a. What is the effective annual cost to your firm

Your firm purchases goods from its supplier on terms of 2 / 15, net 35

a. What is the effective annual cost to your firm if it chooses not to take the discount and makes its payment on day 35____%?

b. What is the effective annual cost to your firm if it chooses not to take the discount and makes its payment on day 45___%?

(Hint: Use a 365-day year.)

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