Question: Bowers Technology is in the process of converting a customer's $10,000 account receivable into a note receivable. Bowers is considering the following three options in

Bowers Technology is in the process of converting a customer's $10,000 account receivable into a note receivable. Bowers is considering the following three options in establishing the terms of the note:
1. 4% 9-month note
2. 6% 6-month note
3. 8% 3-month note
Required
Which option(s) should Bowers choose if it wants to maximize interest revenue? What reasons might Bowers have for choosing the options that results in the least amount of interest revenue?

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The 9 month and 6 month note will yield the same amount of interest revenue 1 4 9month note 300 I... View full answer

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