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    Fundamentals Of Corporate Finance Study Set 21
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    Exam 20: Credit and Inventory Management
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    Taylor and Swanson Currently Sells on a Cash Basis Only
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Taylor and Swanson Currently Sells on a Cash Basis Only

Question 35

Question 35

True/False

Taylor and Swanson currently sells on a cash basis only. The firm is considering switching to a 30-day credit policy. When analyzing the cost benefit of this switching policy, the firm should consider the credit price.

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