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Robinson Rollingpin Corporation Has Been Asked by Its Customers to Please

Question 29

Essay

Robinson Rollingpin Corporation has been asked by its customers to please grant them a 2% discount if they pay their bill within 15 days. The purchase size of each order is $75,000. Normally, the customer pays within 30 days with no discount. Robinson's cost of debt capital is 12%. Should the request be granted?

Correct Answer:

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Compound method:
Current Policy: PV = $7...

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