Question: 2) Your 4 suppliers offer the terms outlined below. Determine if your firm should take the cash discount offered or pay at the end of

2) Your 4 suppliers offer the terms outlined below. Determine if your firm should take the cash discount offered or pay at the end of the Credit Period for each situation. Assume: The firm has no access to short-term credit. If i krc, the firm should keep the cash invested. . . Supplier 1 1.2/15, net 40 Supplier 2 .75/5. Net 70 Supplier 3 2.5/5, net 45 Supplier 4 1/10, net 45 Terms Discount Period (DP) Credit Period (CP) Cash Discount Rate (d) Annual Investment Opportunity Rate (1) 6% 6% 6% 6% Annualized Cash Discount Rate (kre) 10/(1- d365/CP-DP) Take Discount (Y/N)

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