Repeat Problem 30 assuming that Highes has changed its invoice terms such that full payment is due
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Repeat Problem 30 assuming that Highes has changed its invoice terms such that full payment is due within 60 days.
Cowboy Construction pays invoices in full on the sixtieth day.
Data from problem 30
Cowboy Construction buys materials on account from Highes. Highes offers a 2 percent discount for invoices paid within 10 days. Full payment is due within 90 days. Cowboy Construction routinely pays its invoices on the ninetieth day. If Cowboy’s effective tax rate is 42 percent, what is the cost of capital for accounts payable?
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Related Book For
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
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