mine plc has annual credut of k15m and allows 90 days credit. it is consideringba 2% discount payment with 15 days and reducing the credit period to 60 days. it estimates that 60% of its customers will take advantage of the discount, while the volume of sales will not be affected. tge company finances working capital from an overdraft at a cost of 10%. is the proposed change in policy worth implementing.

mine plc has annual credut of k15m and allows 90 days credit. it is consideringba 2% discount payment with 15 days and reducing the credit period to 60 days. it estimates that 60% of its customers will take advantage of the discount, while the volume of sales will not be affected. tge company finances working capital from an overdraft at a cost of 10%. is the proposed change in policy worth implementing.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 10P

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