One Corporation has two potential suppliers. Both are supplying the items at similar list prices and trade,discounts. However, Supplier A.offered a credit term of 2/10, n/30 and the other offered a term of 3/10, n/40. Which of the following statements is true? a. Alpha should choose Supplier A and pay on the 10th day. b. Alpha should choose Supplier B and pay on the 10th day. c. Alpha can choose either supplier and always pay on the 10th day. d. If Alpha chose Supplier B, the former should pay on the 30th day so that it can maximize the trade discount
One Corporation has two potential suppliers. Both are supplying the items at similar list prices and trade,discounts. However, Supplier A.offered a credit term of 2/10, n/30 and the other offered a term of 3/10, n/40. Which of the following statements is true? a. Alpha should choose Supplier A and pay on the 10th day. b. Alpha should choose Supplier B and pay on the 10th day. c. Alpha can choose either supplier and always pay on the 10th day. d. If Alpha chose Supplier B, the former should pay on the 30th day so that it can maximize the trade discount
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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One Corporation has two potential suppliers. Both are supplying the items at similar list prices and trade,discounts. However, Supplier A.offered a credit term of 2/10, n/30 and the other offered a term of 3/10, n/40. Which of the following statements is true?
a. Alpha should choose Supplier A and pay on the 10th day.
b. Alpha should choose Supplier B and pay on the 10th day.
c. Alpha can choose either supplier and always pay on the 10th day.
d. If Alpha chose Supplier B, the former should pay on the 30th day so that it can maximize the trade discount
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