Solution-Calculate the proposed discount

Calculate the proposed discount

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Reference no: EM133062466

DT plc has £20m 60 days FO is considering offering a 10%20 days It is forecast that 40% 60% 60 days of sales per year all of which are made on credit terms DT's.

The short-term borrowing interest rate is 15%discount for early payment (within) of DT's customers will take the discount and the remaining will continue to pay in.

Calculate whether the proposed discount will result in a net saving or cost for DT plc

Reference no: EM133062466

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Calculate the proposed discount

Reference no: EM133062466

Reference no: EM133062466

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