Effective annual interest rates for cash discount terms

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Question: 1. Are seasonal discounts appropriate in agricultural businesses (which are certainly seasonal)?

2. What are the effective annual interest rates for the following cash discount terms:

(a) 1110, net 20;

(b) 1/5, net 10;

(c) net 25?

3. Why would a manufacturer offer a rebate in-stead of lowering the suggested list price?

4. How can a marketing manager change her F.O.B. terms to make her otherwise competitive marketing mix more attractive?

Reference no: EM131921939

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