Phone, Inc. a manufacturer of phone answering machines, is analyzing the credit terms of three of its suppliers, shown below. Its cost of borrowing from its bank is 14%. Supplier1 - 1/10 net 45;...


Phone, Inc. a manufacturer of phone answering machines, is analyzing the credit terms of three of its suppliers, shown below. Its cost of borrowing from its bank is 14%. Supplier1 - 1/10 net 45; Supplier2 - 2/15 net 30; and Supplier3 2/10 net 35. From which, if any, of the suppliers should the cash discount be taken, and why?



Jun 05, 2022
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