calculate the present value of this cash outflow assuming trade credit terms of a) 30 days b) 45 days c) 60 days

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 15P: Suppose a firm makes purchases of $3.65 million per year under terms of 2/10, net 30, and takes...
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Memphis Metro just made a $75,000 purchase from a supplier, subject to the extension of suitable trade credit terms. Using a discount rate of 7%, calculate the present value of this cash outflow assuming trade credit terms of

a) 30 days

b) 45 days

c) 60 days

d) 90 days

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