None U.S. Steel has an invoice of $3,000,000 from a supplier. The credit terms are 2/15,net 45. U.S. Steel's cost of short-term borrowing is 5%. What is the difference inthe present value of paying the invoice on day 15 versus paying on day 45?O $47,649$24,439$83,390$64,138

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J.S. Steel has an invoice of $3,000,000 from a supplier. The credit t et 45. U.S. Steel's cost of short-term borrowing is 5%. What is the he present value of paying the invoice on day 15 versus paying on c $47,649

J.S. Steel has an invoice of $3,000,000 from a supplier. The credit t et 45. U.S. Steel's cost of short-term borrowing is 5%. What is the he present value of paying the invoice on day 15 versus paying on c $47,649

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Trade Credit

Answer- a- Before Shipping of goods

Question

None

U.S. Steel has an invoice of $3,000,000 from a supplier. The credit terms are 2/15,
net 45. U.S. Steel's cost of short-term borrowing is 5%. What is the difference in
the present value of paying the invoice on day 15 versus paying on day 45?
O $47,649
$24,439
$83,390
$64,138

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