Cash discount, Financial Management

Assignment Help:
Which one is true
1.the higher the discount rate the lower the cost of trade credit
2.the higher the discount rate the higher the cost of trade credit
3.cost of trade credit during the discount period is equal to discount rate
4.the smaller the the spread between credit and cash discount period the lower will be the cost of trade credit
5. One should avail cash discount only when the ordering cost of trade credit is less than the operating cost of cash

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