Is it financially attractive to pay the bills early

Reference no: EM131518209

Question: A supplier has offered your company a 1% discount for all bills that are paid 15 days after they are billed. The bills would normally be due 45 days after they are billed. What is the return on paying the bills early? If your company can borrow funds from a line of credit at a yield of 13%, is it financially attractive to pay the bills early? The line of credit requires a compensating balance.

Reference no: EM131518209

Questions Cloud

Determining the corporate wireless network : Compare the typical wireless networking equipment used in a home or small-office wireless network to that of a corporate wireless network.

What is the return on paying the bills early : A supplier has offered your company a 0.5% discount for all bills that are paid 10 days after they are billed. The bills would normally be due 30 daysafter.

Persons philosophy and describing : Choose an individual from the list below and explain the person's philosophy and describing, in detail, the specific contributions.

Create a scrapbook-style report on wwi : Create a scrapbook-style report on WWI in a word processing program or in Power point.

Is it financially attractive to pay the bills early : A supplier has offered your company a 1% discount for all bills that are paid 15 days after they are billed. The bills would normally be due 45 days.

Design enterprise-wide strategic planning : Design enterprise-wide strategic planning and information management tools and resources for mission-critical business decisions

Calculate the accounting break-even level of sales in dollar : According to a confidential management report, What happens to net present value? Calculate the accounting break-even level of sales in dollars.

Explain the term iron curtain : Explain the term "iron curtain."What is the policy of containment?Why did the U.S. go to war in Korea? What was the outcome?

What is the cost of the stock offer and cash offer : What is the cost of the stock offer? What is the cost of the cash offer? Which alternative should X Corporation pursue?

User Account

All Pages