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What effects might such a proposal have on the supplier

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Question: A supplier contemplates changing the credit terms offered to his customers. At present, the terms are net 30 days. The new proposal offers a 2-percent discount for payment within 10 days, or the balance due within 60 days. What effects might such a proposal have on both the supplier's and a purchaser's cash flows?

Reference no: EM131750541

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