Assume that the financial manager is considering stretching the firms accounts payable by paying its vendors at

Question:

Assume that the financial manager is considering stretching the firm’s by paying its vendors at a later date. What are the key cost trade-offs that would be involved when making this stretching decision? How would you quantitatively model this decision?
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...