Use the Information to Answer the Following Question(s)

question 38

Multiple Choice

Use the information to answer the following question(s) .
SureDrip Irrigation Systems Inc. is supplied with plastic chips for their plastic injection molding manufacturing process. Their supplier, Sun Chemical, Inc. offers financing terms of a 2% discount if the accounts payable are paid in 10 days or less with the full balance due in 45 days. Short-term financing available to SureDrip is available at an annual rate of 9.6%. SureDrip has just purchased $400,000 of plastic chips from Sun Chemical.
-Refer to Instruction 21.1. What is the effective annual interest cost of supplier financing offered by Sun Chemical?

• A)7.3%
• B)9.5%
• C)10.4%
• D)22.9%

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Definitions:

Null Hypotheses

A statement positing that no statistical relation or significance exists in a set of given observations.

Factorial Analysis

Factorial analysis is another term for factor analysis, a technique employed in statistics to explore underlying factors or components that explain the variability among observed variables.

Main Effect

The direct influence of an independent variable on a dependent variable in an experiment.

Research Hypotheses

Proposed explanations for a phenomenon that are tested through scientific research.