The annualized cost, Suppose Fastest Company is offered

The annualized cost

Assignment Help Financial Management

Reference no: EM131043878

Suppose Fastest Company is offered accounts payable terms of " 2.4 percent, 14 days, net 35 days" but its suppliers actually allow it to repay in 50 days. Estimate the annualized opportunity cost for not taking advantage of the 2.4 percent discount for quick 14 day payment.

The annualized cost is:

Reference no: EM131043878

Questions Cloud

Break-even strictly on the basis of cash expenditures : ABC determines its break-even strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $800,000, but 30 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for ..

What is an informal logical fallacy : What is cyberethics? How is it different from and similar to computer ethics and Internet ethics? Summarize the key aspects of each of the "four phases" we used to describe the evolution of cyberethics as a field of applied ethics.

Modeled with an exponential function : Assume the initial value of a car is $18,000 and that the car's value depreciates. The value of the car can be modeled with an exponential function, V = Iekt, where V is the value of the car at year t, I is the initial value of the car, and k is a..

Real estate adventures and contracting expects sales : Real Estate Adventures & Contracting expects sales next year to be $3,000,000 if the economy is strong, $1,800,000 if the economy is steady, and $500,000 if the economy is weak. What is the expected level of sales for next year?

The annualized cost : Suppose Fastest Company is offered accounts payable terms of " 2.4 percent, 14 days, net 35 days" but its suppliers actually allow it to repay in 50 days. Estimate the annualized opportunity cost for not taking advantage of the 2.4 percent discount f..

Considering expansion into new product line : Peanut Manufacturing is considering expansion into a new product line. Assets to support expansion will cost $700,000. It is estimated that Database can generate $1,000,000 in annual sales, with a 5 percent profit margin. What would net income and re..

What are the measures adopted to enhance sufficient : what are the measures adopted to enhance sufficient resistance of the superstructure during the launching process?

Based on the profit margin-which division is superior : Zenith School has two divisions. School A has a profit of $600,000 on sales of $1,500,000. School B is only able to make $75,000 on sales of $150,000. Based on the profit margins (returns on sales), which division is superior?

Use to create project an amortization schedule : The goal of this project is to create a worksheet that through inputs and a series of formulas, be a basis of an expandable tool, that you can use to create project an amortization schedule. The spreadsheet should be able to do various calculations u..

User Account

All Pages