Doc Ltd. has just renegotiated new credit terms with their supplier of 3/10 net 60. The...
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Doc Ltd. has just renegotiated new credit terms with their supplier of 3/10 net 60. The company, however, does not have the $60,000 on hand to take advantage of the discount and is thinking of borrowing the funds from one of its banks. Scotia Bank will lend the company the funds for 30 days at a cost of $450 while TD Bank offers a discounted loan for 30 days at a cost of $400. Required: Advise Doc Ltd on what action they should take. (Use 4 decimal places and show all calculations) Doc Ltd. has just renegotiated new credit terms with their supplier of 3/10 net 60. The company, however, does not have the $60,000 on hand to take advantage of the discount and is thinking of borrowing the funds from one of its banks. Scotia Bank will lend the company the funds for 30 days at a cost of $450 while TD Bank offers a discounted loan for 30 days at a cost of $400. Required: Advise Doc Ltd on what action they should take. (Use 4 decimal places and show all calculations)
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