The following are the three suppliers of ABC corp with different credit terms: Purchase from A with credit terms of 1.5/15, net 30; Purchase from D with credit terms of 1/10, net 30;and Purchase from E with credit terms of 2/10, net 60. The company may obtain a bank loan offering 20% interest rate. Which of the two suppliers has a better or attractive offer for ABC Corp? • A • None of them • D • E
The following are the three suppliers of ABC corp with different credit terms: Purchase from A with credit terms of 1.5/15, net 30; Purchase from D with credit terms of 1/10, net 30;and Purchase from E with credit terms of 2/10, net 60. The company may obtain a bank loan offering 20% interest rate. Which of the two suppliers has a better or attractive offer for ABC Corp? • A • None of them • D • E
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 6MC
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Question
The following are the three suppliers of ABC corp with different credit terms:
Purchase from A with credit terms of 1.5/15, net 30;
Purchase from D with credit terms of 1/10, net 30;and
Purchase from E with credit terms of 2/10, net 60.
The company may obtain a bank loan offering 20% interest rate.
Which of the two suppliers has a better or attractive offer for ABC Corp?
• A
• None of them
• D
• E
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