A furniture store is offering free credit on purchases of over $1,000. You observe that a big-screen

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A furniture store is offering free credit on purchases of over $1,000. You observe that a big-screen television can be purchased for nothing down and $4,000 due in one year. The store next door offers an identical television for $3,650 but does not offer credit terms. Which statement below best describes the "free" credit?
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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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