Which alternative should maazco select

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a) MaazCo needs to increase its working capital by RM4.4 million. The following two financing altenatives are available (assume a 365-day year) Forgo cash discounts (granted on a basis of "3/10, net 30") and pay on the final due date or Issue RM4 7 million of six-month commercial paper to net RM4 4 million.

b) Assume that new paper would be issued every six months Which alternative should MaazCo select? Why?

Reference no: EM133070277

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