Solution-Annual percentage cost of its non-free trade credit

Annual percentage cost of its non-free trade credit

Reference no: EM13540765

MKMI Water Supply purchases $1billion in goods per year from its sole supplier on terms of 5/15, net 45. If the firm chooses to pay on time (on the last day) but does not take the discount, what is the effective annual percentage cost of its non-free trade credit (assume a 365-day year).

Reference no: EM13540765

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Annual percentage cost of its non-free trade credit : MKMI Water Supply purchases $1billion in goods per year from its sole supplier on terms of 5/15, net 45. If the firm chooses to pay on time (on the last day) but does not take the discount, what is the effective annual percentage cost of its no..

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Annual percentage cost of its non-free trade credit

Reference no: EM13540765

Reference no: EM13540765

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