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Cost of trade credit Consider this case: Green Moose Industries buys on terms...

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Finance

Cost of trade credit

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Consider this case: Green Moose Industries buys on terms of 1/15, net 60 from its chief supplier. If Green Moose receives an invoice for $856.75, what would be the true price of this invoice? (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.) $848.18 8.19% O $593.73 5.73% O $1,060.22 8.03% O $720.95 9.66% , assuming a 365-day year. (Note: Round all intermediate The nominal annual cost of the trade credit extended by the supplier is 9.66% calculations to four decimal places, and your final answer to two decimal places.) Suppose Green Moose does not take advantage of the discount and then chooses to pay its supplier late-so that on average, Green Moose will pay its supplier on the 65th day after the sale. As a result, Green Moose can decrease its nominal cost of trade credit by by paying late. (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.)

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