Advise company should take the overdraft to pay the supplier

Reference no: EM132774113

Problem 1: A Company purchase goods worth Sh 8 million from a supplier on the following terms; 4/10 NET 60. The Company can take an overdraft at an interest rate of 24% p.a to pay the supplier. Advise whether the company should take the overdraft to pay the supplier in 10 days (show relevant workings)

Reference no: EM132774113

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