Question: Please help me . I will give good rating . Please c. Like like Store Sdn Bhd is considering taking a cash discount from XYZ

Please help me . I will give good rating . Please

Please help me . I will give good rating . Please c.

c. Like like Store Sdn Bhd is considering taking a cash discount from XYZ supplier. The supplier offers terms of 3/10 net 60. The manager of Like like Store Sdn Bhd also had an option to get a bank loan of RM 175,000 for 6 months at 10% interest rate, on a discount basis with 10% compensating balance requirement. i. Compute the effective interest rate on the loan. (4 marks) ii. Compute the cost of not taking the discount given by the XYZ supplier. (2 marks) iii. Which one should the manager choose? Why? (use 360-day) (2 marks) iv. Why does company offer cash discount? State 2 reasons. (2 marks)

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