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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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Capital budgeting is the process of analyzing: Group of answer choices Cash outflows only. Investments with certain outcomes onl
yanalaym [24]

Answer:

Long-term investments.

Explanation:

Capital budgeting can be regarded as process that is been utilized by business in determining the type proposed fixed asset purchases that need to be declined or should be accepted. This process helps in creating quantitative view as regards the proposed fixed asset investment, so that rational basis to make make a judgment can be surfaced. It should be noted that Capital budgeting is the process of analyzing Long-term investments.

6 0
2 years ago
According to the u.s. census, the multigenerational household has increased more than a third between 1990 and 2000, and represe
mixas84 [53]
According to the u.s. census, the multi generational household has increased more than a third between 1990 and 2000, and represents 4.8% of all households in america. A multi generational household is a household that consist of more than two generation living in the same roof. For example, a household that consist of the householder, the child, and the grandparents or the householder parents<span>.</span>
3 0
3 years ago
Is the loss in efficiency due to market power large or​ small? explain. the loss in efficiency due to market power is?
saul85 [17]

Answer:

Small

Explanation:

Competition limits the market power, even when the market is not perfectly comparative.

Market power refers to a company's relative ability to manipulate the price of an item in the marketplace by manipulating the level of supply demand or both.

A company with substantial market power has the ability to manipulate the market price and thereby control its profit margin, and possibly the ability to increase obstacle to potential new entrants into the market.

5 0
3 years ago
A number of things organizations can do prior to change to prepare employees include which of the following?
natulia [17]

Answer:

The correct answer is Allow employees to particpate.

Explanation:

Following a strategy in which employee participation is promoted does not imply that all problems are delegated to them, or rather unimportant problems; It consists in the active intervention of workers when identifying, analyzing and solving problems that make it difficult to achieve business objectives. It is important that employees get involved in the challenges of the organization to which they belong, and in the same way that they feel satisfied by a positive performance, they must also be aware and persistent in the face of adverse situations that affect the performance of the company.

6 0
3 years ago
The Country Music Hall of Fame is considering increasing admission prices to increase gross revenue. If the price of admission r
Kitty [74]

Answer:

1

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

Percentage change in quantity demanded = (30/20) - 1 = 0.5 = 50%

Percentage change in price = (1500 / 3000) - 1 = 0.5 = 50%

50% / 50% = 1

I hope my answer helps you

3 0
3 years ago
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