Effective annual cost of not taking the discount

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A buyer is offered terms of 2/30, net 90, but they are regularly able to “stretch” their payables out to 120 days without any penalty. What is the effective annual cost of not taking the discount for this company? a. 8.3% b. 9.5% c. 10.7% d. 12.4%

Reference no: EM131616087

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