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Salma Industries currently makes all sales on credit and offers no cash discount. The firm...

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Accounting

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Salma Industries currently makes all sales on credit and offers no cash discount. The firm is analyzing offering a 2 percent discount for payment within 10 days. Currently, the firm's average collection is 43 days on annual sales of $3,000,000. The financial manager estimates that 40 percent of Indigo's customers (in dollar terms) would take advantage of the discount. If the firm can invest at 12 percent, should the company apply the discount or no? Explain your steps

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