The high cost of short-term financing has recently caused a company to reevaluate the terms of credit it extends to its customers. The current policy is 1/10, net 60. Customers can borrow at the prime rate. Which of the following prime rates would induce the company to change its terms of credit in order to avoid an undesirable extension in its collection of receivables?

2%5%7%8

Answer rating: 100% (QA)

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