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A firm buys on terms of 28 net 45 days it does not take

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A firm buys on terms of 2/8, net 45 days, it does not take discounts, and it actually pays after 58 days. What is the effective annual percentage cost of its nonfree trade credit? (Use a 365-day year.)

a. 14.34%
b. 15.10%
c. 15.89%
d. 16.69%
e. 17.52%

Reference no: EM13569463

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