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Your Cost of Capital Is 16% and You Are Offered

Question 76

Multiple Choice

Your cost of capital is 16% and you are offered credit terms of 1/10 net 60.Do you take the discount or not and why?


A) you take the discount because 7.37% is less than 16%
B) you do not take the discount because 7.37% is less than 16%
C) you take the discount because 23.37% is greater than 16%
D) you do not take the discount because 7.37% is less than 16.0%

Correct Answer:

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