Question: Luo Company has always provided its customers with payment terms of 1/10, n/30. Members of its sale force have commented that competitors are offering customers

Luo Company has always provided its customers with payment terms of 1/10, n/30. Members of its sale force have commented that competitors are offering customers 2/10, n/45. Explain what these terms mean, and discuss the implications to Luo of switching its payment terms to those of its competitors.

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