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A Firm Decides to Stretch Its Accounts Payable,resulting in an Effective

Question 102

Multiple Choice

A firm decides to stretch its accounts payable,resulting in an effective annual cost of credit of 20.24%,under terms of 2/10 net 20.When is the firm paying its accounts payable?


A) 40 days
B) 45 days
C) 50 days
D) 54 days
E) 55 days

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