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J.S. Steel has an invoice of $3,000,000 from a supplier. The credit t et 45. U.S. Steel's cost of short-term borrowing is 5%. What is the he present value of paying the invoice on day 15 versus paying on c $47,649

J.S. Steel has an invoice of $3,000,000 from a supplier. The credit t et 45. U.S. Steel's cost of short-term borrowing is 5%. What is the he present value of paying the invoice on day 15 versus paying on c $47,649

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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U.S. Steel has an invoice of $3,000,000 from a supplier. The credit terms are 2/15, net 45. U.S. Steel's cost of short-term borrowing is 5%. What is the difference in the present value of paying the invoice on day 15 versus paying on day 45? O $47,649 $24,439 $83,390 $64,138
Transcribed Image Text:U.S. Steel has an invoice of $3,000,000 from a supplier. The credit terms are 2/15, net 45. U.S. Steel's cost of short-term borrowing is 5%. What is the difference in the present value of paying the invoice on day 15 versus paying on day 45? O $47,649 $24,439 $83,390 $64,138
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