A firm offers terms of 1/10, net 40. a. What effective annual interest rate does the firm earn when a customer does not take the discount? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What effective annual interest rate does the firm earn if the discount is changed to 2 percent? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. c. What effective annual interest rate does the firm earn if the credit period is increased to 60 days? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. d. What effective annual interest rate does the firm earn if the discount period is increased to 15 days? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Effective annual interest rate b. Effective annual interest rate c. Effective annual interest rate d. Effective annual interest rate % % % %
A firm offers terms of 1/10, net 40. a. What effective annual interest rate does the firm earn when a customer does not take the discount? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What effective annual interest rate does the firm earn if the discount is changed to 2 percent? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. c. What effective annual interest rate does the firm earn if the credit period is increased to 60 days? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. d. What effective annual interest rate does the firm earn if the discount period is increased to 15 days? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Effective annual interest rate b. Effective annual interest rate c. Effective annual interest rate d. Effective annual interest rate % % % %
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 8P
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