Question: A commercial customer is currently paying its key supplier whose credit terms are net 10, by check. The check takes six days to clear. The

A commercial customer is currently paying its key supplier whose credit terms are net 10, by check. The check takes six days to clear. The supplier proposes to the customer to pay by ACH credit which means the payment would clear in one day. If the company's opportunity cost is 10%, what discount rate does the supplier have to offer the customer for this payment to be float-neutral? 0.137% O 0.524% 0.842% O 0.997%
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