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The Decision Rule a Payables Manager Should Follow When Considering

Question 9

Multiple Choice

The decision rule a payables manager should follow when considering how best to apply NPV analysis to payables decisions is to _______________,so long as payment is not made late.


A) ignore the NPV and follow usual industry payment practices
B) delay payment for an additional day as long as NPV continues to fall
C) delay payment for an additional day as long as NPV continues to increase
D) always pay within the cash discount period

Correct Answer:

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