Multiple Choice
A firm is offered trade credit terms of 2/8, net 45 days. The firm does not take the discount, and it pays after 58 days. What is the effective annual cost of not taking this discount? (Assume a 365-day year.)
A) 21.63%
B) 13.35%
C) 14.90%
D) 15.89%
E) 18.70%
Correct Answer:
Verified
Correct Answer:
Verified
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