AFP
CTP · Question #154
(Topic 2) A seller's cost of capital is 12%. The average credit sale is $200,000, and the credit terms are 2/10, net 30. What is the present value of receiving full payment on day 30?
The correct answer is B. $198,046.66. See the full explanation below for the reasoning.
Question
- (Topic 2)
A seller’s cost of capital is 12%. The average credit sale is $200,000, and the credit terms are 2/10, net 30. What is the present value of receiving full payment on day 30?
Options
- A$198,019.80
- B$198,046.66
- C$199,335.55
- D$199,344.62
How the community answered
(39 responses)- A5% (2)
- B85% (33)
- C8% (3)
- D3% (1)
Community Discussion
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