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Aneli [31]
3 years ago
12

A firm is offered credit terms of 2/10 net 45 by most of its suppliers. The firm also has a credit line available at a local ban

k at an interest rate of 12 percent. What is the cost of giving up the cash discount
Business
1 answer:
gavmur [86]3 years ago
3 0

Answer:

21.28%

Explanation:

Note: <em>Assuming 365 day year</em>

Cost of giving up cash discount = [Discount rate / (1-Discount rate)] * 365 / [Credit period - Discount period]

Cost of giving up cash discount = [0.02/(1-0.02)] * [365/(45-10)]

Cost of giving up cash discount = [0.02/0.98] * [365/35]

Cost of giving up cash discount = 0.0204082 * 10.42857

Cost of giving up cash discount = 0.212828

Cost of giving up cash discount = 21.28%

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dave ramsey says debit!!!

5 0
3 years ago
You have saved​ $120,000 for your child to attend college. If it is in an account earning an annual rate of​ 8%, how much can yo
harkovskaia [24]

Answer:

I will take $36,230.5 to pay for the education of child.

Explanation:

Cash Invested in the saving account will earn a return of 8% each year and this amount could be withdrawn by the me to pay for the education of child.

We will use following formula to calculate the annual payments

P = r ( PV ) /  [ 1 - ( 1+ r )^-n ]

where

PV = amount of investment = $120,000

r = rate of return = 8%

n = number of period = 4 years

P = 8% ( 120,000 ) / [ 1 - ( 1 + 0.08 )^-4 ]

P = 36,230.5

3 0
3 years ago
The difference between total assets of a firm and its total liabilities is called?
Lena [83]

The difference between the total value of assets and the total value of liabilities is equity. Also known as common equity and owners equity.

Assets represent valuable resources that your company manages. Liabilities represent the company's obligations, while both debt and equity represent how the company's assets are financed.

The sum of the difference between assets and liabilities is equity, which is the remaining net ownership of the company by the owners.

In its simplest form, a balance sheet can be divided into two categories: assets and liabilities. assets are items owned by a company that can provide future economic benefits. A liability is something you owe to another party.

Learn more about Liabilities here brainly.com/question/14921529

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4 0
1 year ago
Ski Safety sells emergency safety and rescue products to ski patrols and rescue workers at prices that are below those of its co
UkoKoshka [18]

Answer: Cost focus strategy

Explanation:

 The cost focus strategy is one of the type of business strategy in which the various types of companies or organizations are try to expand their marketing segments and also emphasizing the cost in the market.  

 The cost focus strategy is one of the important element and component  of the generic marketing strategy in the market.  

According to the given question, the ski safety selling the various types of products for the rescue purpose and it outlining the main objective and start selling on the basis of emergency at very high cost.

Therefore, Ski safety is basically pursing the cost focus strategy.

8 0
4 years ago
Christopher manages a fitness club, which hires many younger, college-aged employees. He has tried several incentive plans to mo
Anarel [89]

Answer:

B. shield his employees from having to make decisions about how the company operates.

6 0
3 years ago
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