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Question
Your firm buys on credit terms of 2/10, net 45, and it always pays on day 45. If you calculate that this policy effectively costs your firm $157,500 each year, what is the firm's average accounts payable balance?
a. $1,234,000
b. $75,000
c. $157,500
d. $625,000
e. $750,000
Answer
This answer is hidden. It contains 11 characters.
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