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Effective annual percentage cost

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Toy Corp. is offered terms of 2/15, net 50 by one of its suppliers. The company decides not to take the discount, and it generally pays after 60 days. Assuming the company purchases $5.5 million worth of inventory, what is the effective annual percentage cost of its non-free trade credit (assume a 365-day year)?

Reference no: EM131318228

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