Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 75;...

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Lancaster Lumber buys $8 million of materials (net of discounts)on terms of 3/5, net 75; and it currently pays on the 5th day andtakes discounts. Lancaster plans to expand, which will requireadditional financing. Assume 365 days in year for yourcalculations.
If Lancaster decides to forgo discounts, how much additionalcredit could it obtain? Write out your answer completely. Forexample, 5 million should be entered as 5,000,000. Round youranswer to the nearest cent.
What would be the nominal cost of that credit? Do not roundintermediate calculations. Round your answer to two decimalplaces.
What would be the effective cost of that credit? Do not roundintermediate calculations. Round your answer to two decimalplaces.
If the company could get the funds from a bank at a rate of 7%,interest paid monthly, based on a 365-day year, what would be theeffective cost of the bank loan? Do not round intermediatecalculations. Round your answer to two decimal places.

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Lancaster Lumber buys $8 million of materials (net of discounts)on terms of 3/5, net 75; and it currently pays on the 5th day andtakes discounts. Lancaster plans to expand, which will requireadditional financing. Assume 365 days in year for yourcalculations.If Lancaster decides to forgo discounts, how much additionalcredit could it obtain? Write out your answer completely. Forexample, 5 million should be entered as 5,000,000. Round youranswer to the nearest cent.What would be the nominal cost of that credit? Do not roundintermediate calculations. Round your answer to two decimalplaces.What would be the effective cost of that credit? Do not roundintermediate calculations. Round your answer to two decimalplaces.If the company could get the funds from a bank at a rate of 7%,interest paid monthly, based on a 365-day year, what would be theeffective cost of the bank loan? Do not round intermediatecalculations. Round your answer to two decimal places.