Tangshan Mining Has Extended Credit Terms of 3/15 Net 30

question 40

Multiple Choice

Tangshan Mining has extended credit terms of 3/15 net 30 EOM. The cost of giving up the cash discount, assuming payment would be made on the last day of the credit period, is 75.26 percent. If the firm were able to stretch its accounts payable to 60 days without damaging its credit rating, the cost of giving up the cash discount would only be ________.

• A) 18.81%
• B) 18.25%
• C) 21.90%
• D) 25.09%

---

Definitions:

Arjun Appadurai

A notable anthropologist and scholar known for his work on globalization, particularly focusing on the cultural dimensions of economic exchange.

Cultural Hybrids

Refers to the blending of elements from different cultures to create new cultural practices, expressions, or identities.

Appadurai's Landscapes

A theoretical framework proposed by Arjun Appadurai to describe the complex global flow of goods, people, technology, ideas, and images across cultural boundaries.

Nation-States

are sovereign political entities characterized by a defined territory, government, and population with a shared sense of cultural identity.