Early payment discount versus loan Joanne Germano works in an accounts payable department of a...
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Early payment discount versus loan Joanne Germano works in an accounts payable department of a major retailer. She has attempted to convince her boss to take the discount on the 3/15 net 45 credit terms most suppliers offer, but her boss argues that giving up the 3% discount is less costly than a short-term loan at 12%. Prove to whoever is wrong that the other is correct. (Note: Assume a 365-day year.) The cost of giving up the cash discount is \%. (Round to two decimal places.) Who is right in this case? (Select the best answer below.) Joanne's boss Joanne
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