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What is the cost of source

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D. M. Ferguson and Associates is considering the three alternative sources of short-term funds shown here. What is the cost of each source?

1. Skipping the discount, with terms of 1/10, net 30, and paying on day 30

2. Borrowing from the bank at 10%, interest in arrears, with a 20% compensating balance requirement

Reference no: EM131853193

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