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1. Cost of giving up cash discounts.
Determine the cost of giving up cash discounts under the following terms of ?sale:1/10 net 180.
(Note?: Assume a? 365-day year.)
The cost of giving up the cash discount is _______% Round the answers two decimal places.
2. Cash discount versus loan Joanne Germano works in an accounts payable department of a major retailer. She has attempted to convince her boss to take the discount on the 3/15 net 60 credit terms most suppliers? offer, but her boss argues that giving up the 3?% discount is less costly than a? short-term loan at 11?%. Prove to whoever is wrong that the other is correct.
?(?Note: Assume a? 365-day year.)
The cost of giving up the cash discount is ______% Round two decimal places
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