Question: Your raw material supplier has been accepting payments on 30 day terms with no interest penalty. Recently, you received an invoice which stated that the

Your raw material supplier has been accepting payments on 30 day terms with no interest penalty. Recently, you received an invoice which stated that the supplier would offer terms of 1/10, net 30. You have a with your bank at an EAR of 14.5% per year on outstanding loans. Should you accept the discount offer? Please explain why or why not.

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