Simple Simon's Bakery purchases supplies on terms of 1.4/10 comma net 25. If Simple Simon's...
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Simple Simon's Bakery purchases supplies on terms of 1.4/10 comma net 25. If Simple Simon's chooses to take the discountoffered, it must obtain a bank loan to meet its short-term financing needs. A local bank has quoted Simple Simon's owner an interest rate of 11.1% on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking thediscount? (Use 365 days for a year.) Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Select the best choicebelow.)
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