Memphis Metro just made a $75,000 purchase from a supplier, subject to the extension of suitable trade credit terms. Because of Memphis Metro’s strong balance sheet and stellar credit rating, the firm’s most recently issued line of credit is priced at 3.65 percent. Calculate the present value of this cash outflow assuming trade credit terms of 30 days; 45 days 60 days Please use Excel to explain, and show the Excel formula.

Memphis Metro just made a $75,000 purchase from a supplier, subject to the extension of suitable trade credit terms. Because of Memphis Metro’s strong balance sheet and stellar credit rating, the firm’s most recently issued line of credit is priced at 3.65 percent. Calculate the present value of this cash outflow assuming trade credit terms of 30 days; 45 days 60 days Please use Excel to explain, and show the Excel formula.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

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