Would you advise the firm to pay early to receive

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Reference no: EM133441142

A supplier is offering a 3% cash discount for payment within 14 days. Alternatively, they will allow a maximum of 40 days credit.

The business is expecting to be short of cash but an overdraft facility is available from the bank at an annual interest rate of 14%

Would you advise the firm to pay early to receive the discount?

Reference no: EM133441142

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