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Question - You are going to place an order with a new supplier. You have been offered terms of 2/10 net 60 from the date your supplies are shipped. The cost of borrowing from your bank is 16 percent (annual rate). What is the best course of action in paying the supplier?
A) Pay as soon as you receive supplies.
B) Pay on the 10th day after receiving supplies.
C) Pay on the 11th day after receiving supplies.
D) Pay on the 60th day after receiving supplies.
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