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A company is currently offering terms of 1/5, Net 45 and they have an average...

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Finance

A company is currently offering terms of 1/5, Net 45 and they have an average credit sale of $125,000 and an opportunity cost of capital of 9.5%. What is the net benefit (or cost) to the company if one of their buyers takes the discount terms?

Group of answer choices

Benefit of $36.26

Benefit of $26.36

Cost of $36.26

Cost of $26.36

Answer & Explanation Solved by verified expert
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