North Folk Dairy has an unused bank revolving credit of $50 million. North Folk Dairys vendor provided
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North Folk Dairy has an unused bank revolving credit of $50 million. North Folk Dairy’s vendor provided an invoice in the amount of $100,000 with payment terms of 2/10, net 45. Compute the nominal cost of not taking the cash discount of 2/10, net 45. If North Folk Dairy does not have sufficient internal funds, what is an option for North Folk Dairy to obtain funds to take the discount?
Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
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