What is the approximate effective cost of missing the cash

Assignment Help Finance Basics
Reference no: EM13292633

Assume that you have been offered cash discounts on merchandise that can be purchased from either of two suppliers. Supplier A offers trade credit terms of 3/20, net 70, while supplier B offer 4/15, net 80. What is the approximate effective cost of missing the cash discounts from each supplier? If you could take advantage of either cash discount offer, which supplier would you select?

Reference no: EM13292633

Questions Cloud

Customer satisfaction and customer integration : Now, when it comes to customer satisfaction and customer integration, I am a fanatic. You wouldn't believe how much we have learned about our customers' needs from discussion sessions we have with them. But, hold on. To integrate customers into the t..
How much work is done by the spring during this process : A spring with spring constant k = 430 N/m is initially compressed x = 1.60 cm. How much work is done by the spring during this process
How to calculate the pressure of the gas in the cylinder : A 5.00 Liter cylinder contains 860 g of Ar gas at 27 degrees celsius. Calculate the pressure of the gas in the cylinder
Find the electric potential energy of this system of charges : Two point charges q1 = 4.0 ?C and q2 = -8.0 ?C are placed along the x-axis at x1 = 0 m and x2 = 0.20 m, find the electric potential energy of this system of charges
What is the approximate effective cost of missing the cash : What is the approximate effective cost of missing the cash discounts from each supplier? If you could take advantage of either cash discount offer, which supplier would you select?
Determine the peak output voltage for bridge rectifier : determine the peak output voltage for bridge rectifier assuming the particle model what PIV rating is required for the diode the transformer is specified to have a 12Vrms secondary voltage for the standard 110 vacross the primary
Discuss the different properties : List and discuss the different properties, which will classify the group as a dihedral group of order 8.
Calculate the average collection period for each year : The Robinson Company from Problem 2 had net sales of $1,200,000 in 2010 and $1,300,000 in 2011.
Find the speed with which the sled moves across the snow : A horse draws a sled horizontally on snow at constant speed. The horse can produce a power of 1.155 hp. find the speed with which the sled moves across the snow

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine expected value

King, Corporation, a successful Midwest company, is planning opening a branch office on the west coast. Under normal economic conditions, with a 45% probability of occurring, King can expect to earn a net income of $50,000 per year.

  How many futures contract does he have to purchase

The beta of the stock is 1.4. How many futures contract does he have to purchase? If it's a short position, report a negative number.

  What are the pros and cons of setting a target rating

Some companies' debt-equity targets are expressed not as a debt ratio, but as a target debt rating on a firm's outstanding bonds. What are the pros and cons of setting a target rating, rather than a target ratio? Please explain both and provide ad..

  What happens to the value of a perpetuity

What happens to the value of a perpetuity when interest rates increase? What happens when interest rates decrease. Explain why these changes occur.

  Description of management policy

You are a manager in an organization with a deeply embedded follow-the-rules culture. The new vice president of operations has just set forth a new campaign called the Innovations Action Policy to reward innovative actions.

  Find the cost of the holiday hotel

Based on acquisition mode and market value accounting for land and other fixed assets acquired for business - Find the cost of the Holiday Hotel.

  Use the three-step procedure to calculate federated wacc

The interest rate has dropped to 7.6%. The companys business risk, opportunity cost of capital, and tax rate have not changed. Use the three-step procedure to calculate Federated WACC under these new assumptions.

  What is the annual percentage rate on your account

Your credit card company charges you 1.13 percent per month. What is the annual percentage rate on your account?

  Compute the cost of preferred stock for medco corp

Medco Corporation can sell preferred stock for $106 with an estimated flotation cost of $2. It is anticipated that the preferred stock will pay $6 per share in dividends.

  What rate of return is built into the annuity

Suppose you just won the state lottery, and you have a choice between receiving $2,550,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes.

  Compute the employees earnings for that week

An employee is paid $8.80 per hour for a normal work week of 40 hours. During a given week, this employee worked a total of 50 hours. Compute the employees earnings for that week, assuming time and a half for overtime work.

  Statements concerning cash balance pension plans

Find the correct statement concerning cash balance pension plans.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd