A Firm Is Offered Trade Credit Terms of 2/8,net 45

question 60

Multiple Choice

A firm is offered trade credit terms of 2/8,net 45.The firm does not take the discount,and it pays after 58 days.What is the effective annual cost of not taking this discount? (Note: Do not use the approximate cost. )

• A) 21.63%
• B) 13.35%
• C) 22.95%
• D) 15.65%
• E) 18.70%

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Definitions:

Strategic Implications

Strategic implications refer to the potential effects or outcomes of a particular strategy or decision on an organization's long-term goals and objectives.

Technician Role

A position primarily focused on applying technical skills and knowledge to fix, maintain, or operate equipment and systems.

Managerial Role

A position that involves overseeing employees, making decisions, and ensuring the effective operation and growth of an organization or department.

Thought Leadership

The position of authority and influence one establishes in a specific field by sharing insightful, innovative ideas that inspire others.