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Compute the cost of not taking the cash discount

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Reference no: EM133149616

Question - Little Kimi Clothiers can borrow from its bank at 16 percent to take a cash discount. The terms of the cash discount are 3116 net 85.

a. Compute the cost of not taking the cash discount.

b. Should the firm borrow the funds?

Reference no: EM133149616

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