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Calculate the additional annual financing cost

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Wontaby Ltd. is extending its credit terms from 30 to 45 days. Sales are expected to increase from $4,900,000 to $6,000,000 as a result. Wontaby finances short-term assets at the bank at a cost of 10 percent annually. Calculate the additional annual financing cost of this change in credit terms. (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to the nearest whole dollar.)

Reference no: EM132007131

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