Problem TWO: A company is evaluating a potential opportunity to stretch its payment terms with a supplier for the next few months. Annual NET Purchases $4,245,890 Purchase Terms 3/16, NET 35 Supplier approved extended NET Terms 48 days Days per year 365 CALCULATE FREE Trade Credit \$ Average Accounts Payable at NET terms $ Effective Cost of Non-free Trade Credit \% at Original Purchase Terms Effective Cost of Non-free Trade Credit \% at EXTENDED approved NET Terms Problem TWO: Dollar Amount of FREE Trade Credit Average Accounts Payable (based on net) Effective Cost EFF\% (based on net) Effective Cost EFF\% (extended terms)