What is the approximate effective cost of missing the cash

Reference no: EM13292963

Assume that you have been offered cash discounts on merchandise that can be purchased from either two suppliers. Supplier A offers trade credit terms of 3/20, net 70, while supplier B offers 4/15, net 80. What is the approximate effective cost of missing the cash discounts from each supplier? If you could not take advantage of either cash discount offer, which supplier would you select?

Reference no: EM13292963

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