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Flashlights Search result for 'Flashlights':
Paper Excerpts: ... c. Should the company borrow the money to take the discount? Yes, Bright Flashlight should borrow the money to take the discount. The cost of the bank credit is only 10.98% versus Bright Flashlight would need to borrow $360,000 total in order to have the 20% in the bank and still be able to pay the disaster kit requirement list, that among other things, includes "First Aid Kit, battery operated radio and flashlight, Bright Flashlight would be paying an annual cost of failure rate of 12% (.02*360/60) if they don't take the discount. rather than 10 days? If Bright Flashlight waits to pay the bill until the 70^th day, they are paying two percent to use the money an ...
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