If the firm decides to take the cash discount that is offered on goods purchased on credit, the firm should

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The best choice is to pay on the last day of the discount period. This will allow the firm to take advantage of the cash discount while also maximizing their available cash flow during the credit period. Paying as soon as possible may not be financially feasible for the firm and paying on the last day of the credit period may result in missed opportunities for the cash discount.

If the Firm Decides to Take the Cash Discount That