subject
Business, 14.12.2019 07:31 Shami7457

Cost of trade credit and bank loan

lancaster lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 40; and it currently pays on the 5th day and takes discounts. lancaster plans to expand, which will require additional financing. assume 365 days in year for your calculations.

if lancaster decides to forgo discounts, how much additional credit could it obtain? write out your answer completely. for example, 5 million should be entered as 5,000,000. round your answer to the nearest cent. $ what would be the nominal cost of that credit? do not round intermediate calculations. round your answer to two decimal places. % what would be the effective cost of that credit? do not round intermediate calculations. round your answer to two decimal places. %

if the company could get the funds from a bank at a rate of 8%, interest paid monthly, based on a 365-day year, what would be the effective cost of the bank loan? do not round intermediate calculations. round your answer to two decimal places. % should lancaster use bank debt or additional trade credit?

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 01:00
Azster inc. recorded sales revenue for the year that ended december 31, 2014 as $67,000. interest revenue of $5,300 and expenses of $14,000 were also recorded for the same period. what is aster’s net profit or loss?
Answers: 3
question
Business, 23.06.2019 02:00
Create a list of five action verbs you might use on a job application to describe skills and/or work history. here are some examples: (organized, produced, selected, coordinated, contributed). find five other than the examples.
Answers: 3
question
Business, 23.06.2019 10:00
Can you with personal finance homework1 abbreviation of annual percentage rate which the interest rate is applied annually to a loan or a credit card balance2 abbreviation of annual percentage yield the rate of return earn in the course of one whole year taking compounding into amount expressed as a percentage3 cash and other liquid assets such as demand deposits or treasury bills than individual possesses4 an expense that does not vary from one time period to the next5 to obtain a new loan for something on different terms often involving the pain off of an existing high-interest loan by means of a new lower interest one6 money set aside for future use7 to take money out of an account8 to plan the allocation expenditure or use of money9 the amount of money spent on food clothing and other basic necessities10 the amount of money that is anticipated to be received over a. of time either as payment for work goods or services or as profit on capital
Answers: 2
question
Business, 23.06.2019 13:30
Will give brainliest and 100 to best and correct project: benefit analysis study: small business expansion you are the owner of a small business that offers advertising services for your local homebuilding professionals. originally you were the only employee, working at your desktop at home. now your business is growing and you need to add more workers. the first assessment of your current situation: one worker, one desktop computer, one modem, one printer/scanner, one phone line (dsl). you also created a draft situation of what technology you will need if you add two more workers (three workers including yourself): three computers, one router, one printer/scanner, one phone line (wireless). do a one-page benefit analysis study that: compares the cost of adding two desktops vs. one or two laptops compares the cost of replacing the modem with a router/modem. compares the cost of building a wan vs. a lan or a vpn summarizes the total cost of maintaining your home office as the only computing space for your three-worker company. compare this cost with the option of building a network that includes your home office and two satellite locations. here are some questions you may want to consider: do i need a firewall to protect my company's data? are my two new workers' job responsibilities primarily mobile? are they going to be doing enough work in the field to justify owning laptops? what software needs to be installed in their computers for network connections (desktop vs. laptop)?! i will give 100 points and ! !
Answers: 3
You know the right answer?
Cost of trade credit and bank loan

lancaster lumber buys $8 million of materials (net o...
Questions
question
English, 01.05.2021 22:10
question
Mathematics, 01.05.2021 22:10
question
Mathematics, 01.05.2021 22:20