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Question 1: Millbridge Hospital buys its supplies in bulk and has recently switched vendors. The first purchase Millbridge made was for 500 boxes of gauze at $3.46 a box. The purchase had payment terms of 2/15 N/30. Millbridge earns 4 percent on its idle cash. Should it take the discount or not? Justify your answer by showing calculations. (Refer to Appendix 7-B to solve this problem.)
Uses Excel formula: =RATE(nper, pmt, pv, [fv], [type], [guess])
nper = how much sooner invoice is paidpmt = entered 0 because there is no annuitypv = discounted amountfv= amount paid if the business did not take discount (entered as negative number)
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