Company Ais currently cash-constrained, and must make a decision about whether todelay payingone of its suppliers, or

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Company Ais currently cash-constrained, and must make a decision about whether todelay payingone of its suppliers, or taking out a loan. They owe the supplier $23,267,and they can borrowthe money from Bank B, which has offered to lend the firm $23,267for 2months at an APR of 15% (compounded). The loan has a 1.31% loan origination fee.

What would be the cost for Company A if they decide to borrow from Bank B?

Posted Date: May 10, 2024 03:16 AM

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Company Ais currently cash-constrained, and must make a decision about whether todelay payingone of its suppliers, or

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