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-   -   Cost of Failing to Take Cash Discount (https://www.askmehelpdesk.com/showthread.php?t=604134)

  • Oct 15, 2011, 05:14 PM
    kim4kids
    Cost of Failing to Take Cash Discount
    Assume the proceeds from the loan with the compensating balance requirement will be used to take cash discounts. Disregard part b about installment payments. And us the loan costs from part a. If the terms of the cash discount are 2/10, net 60, should the firm borrow the funds to take the discount?

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