if you are buying something for 50000 and are offered terms of 1/10, n/30 should you take the discount if you normally earn a return of 15% on your money?
if you are buying something for 50000 and are offered terms of 1/10, n/30 should you...
A business offers credit terms of 2/15, n/30. These terms indicate that: A. the total amount of the invoice must be paid within 15 days of the invoice date B. the buyer can take a 2% discount if the bill is paid within 30 days of the invoice date C. a discount of 2% can be taken if the invoice is paid within 15 days of the invoice date D. no discount is offered for early payment
A firm offers terms of 1/10, net 30. What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the terms are changed to 2/10, net 30, and the customer does not take the discount? (Use 365 days a year. Do not round...
You are offered $100,000 today or $400,000 in 10 years. Assuming that you can earn 11 percent on your money, which should you chose? If you are offered $400,000 in 10 years and you can earn 11 percent on your money, what is the present value of $400,000?
A firm offers terms of 1.4/10, net 30. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the terms are changed to 2.4/10, net 30, and the customer does not take the discount? (Use 365...
Assume the credit terms offered to your firm by your suppliers are 3.3/4, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
1 pts Question 5 A firm is offered credit terms of 2/10 net 45 by most of its suppliers but frequently does not have the cash available to take the discount. The firm has a credit line available at a local bank at an interest rate of 12 percent. The firm should give up the cash discount, financing the purchase with the line of credit take the cash discount, financing the purchase with the line of credit, the cheaper source...
You are offered $120,000 today or $320,000 in 12 years. Assuming that you can earn 15 percent on your money, which should you choose? If you are offered $320,000 in 12 years and you can earn 15 percent on your money, what is the present value of $320,000? $ ____Round to the nearest cent.)
The credit terms offered to customers for early payment need to be sufficiently lucrative for them to want to pay early, but not so lucrative that the seller is effectively paying an inordinately high interest rate for the use of the money that it is receiving early. The term structure used for credit terms is to first state the number of days you are giving customers from the invoice date in which to take advantage of the early payment credit...
Assume the credit terms offered to your firm by your suppliers are 2.9/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30. The effective annual cost of the trade credit is _____%. (Round to two decimal places.)
(Present-value comparison) You are offered $120,000 today or $340,000 in 12 years. Assuming that you can earn 15 percent on your money, which should you choose? If you are offered $340,000 in 12 years and you can earn 15 percent on your money, what is the present value of $340,000? $nothing (Round to the nearest cent.)