February 19, 2017

Homework Help: finance

Posted by sarah on Tuesday, January 26, 2010 at 12:12am.

Assume the proceeds from the loan with the compensating balance requirement
will be used to take cash discounts. Disregard part b about installment payments
and use the loan cost from part a.
If the terms of the cash discount are 1.5/10, net 50, should the firm borrow the funds
to take the discount?

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