A firm offers terms 3/15, net/60. Calculate the Annual Percentag Annual Percentage Rate (APY) is for each of the scenario below if: a) Discount is changed by 4 percent. b) Credit period is decreased to 45 days. c) New APR of the firm if the discount period is increased by 5 days.

A firm offers terms 3/15, net/60. Calculate the Annual Percentag Annual Percentage Rate (APY) is for each of the scenario below if: a) Discount is changed by 4 percent. b) Credit period is decreased to 45 days. c) New APR of the firm if the discount period is increased by 5 days.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 8P

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5.
A firm offers terms 3/15, net/60. Calculate the Annual Percentage Rate (APR) and
Annual Percentage Rate (APY) is for each of the scenario below if:
a) Discount is changed by 4 percent.
b) Credit period is decreased to 45 days.
c) New APR of the firm if the discount period is increased by 5 days.

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