1. Regal Corp. purchased an item on credit with terms of 3/10, n/45. Using a 360-day year, the company’s annual interest cost of foregoing the cash discount and making payment on the last day of the credit period is?2. Donner Co. intends to acquire a new equipment to increase its capacity. It is estimated to cost P2.4M. A bank can finance the acquisition at 10% discounted interest. Alternatively, the company may just delay payment to its suppliers. Presently, the company buys under terms of 2/10, net 40, but management believes payment count be delayed 30 additional days, without penalt

1. Regal Corp. purchased an item on credit with terms of 3/10, n/45. Using a 360-day year, the company’s annual interest cost of foregoing the cash discount and making payment on the last day of the credit period is?2. Donner Co. intends to acquire a new equipment to increase its capacity. It is estimated to cost P2.4M. A bank can finance the acquisition at 10% discounted interest. Alternatively, the company may just delay payment to its suppliers. Presently, the company buys under terms of 2/10, net 40, but management believes payment count be delayed 30 additional days, without penalt


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