How and when should you repay the trade credit obligation

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Reference no: EM131305099

Your firm is short of cash but can borrow from its credit line at an annualized cost of 5%. Further, your firm has just been offered trade credit terms of 2/10 net 30 for purchases made from a supplier. How and when should you repay the trade credit obligation?

a. on Day 10 with funds from the short-term investment holdings

b. on Day 10 with funds borrowed from the credit line

c. on receipt with funds borrowed from the credit line

d. on Day 30 with funds borrowed from the credit line

Reference no: EM131305099

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