Question: A) Explain how a negative cash conversion cycle arises B) AAA Ltd purchases supplier on terms of 1/10, net 3335, IF AAA Ltd chooses to

A) Explain how a negative cash conversion cycle arises B) AAA Ltd purchases supplier on terms of 1/10, net 3335, IF AAA Ltd chooses to take the discount offered, it must obtain a bank loan to afford it, BOA bank has quoted an APR of 15% on borrowed funds. i. Once AAA Ltd passes the discount period, how much cost will it incur in an annual term? ii. Calculate the EAR for BOA bank. iii. What should AAA Ltd do?

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