Company A is currently cash-constrained, and must make a decision about whether to delay paying...
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Accounting
Company A is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a loan. They owe the supplier $13,854, and they can borrow the money from Bank A, which has offered to lend the firm $13,854 for 2 month(s) at an APR (compounded) of 14%. The bank will require a (no-interest) compensating balance of 8% of the face value of the loan and will charge a $161 loan origination fee, which means Hand-to-Mouth must borrow even more than the $13,854? NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2.04. Do not use the "%" sign.
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