Explain the trade credit facility provided by some companies to their customers that allow them to manage

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Question:

Explain the trade credit facility provided by some companies to their customers that allow them to manage their day-to-day liquidity situation and calculate the opportunity cost of an invoice that specifies the following conditions, as shown below (a. – c.):

a) conditions: 1.25/10, n/30.

b) conditions: 1.25/10, n/60.

c) conditions: 1.5/10, n/60