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06-06-2023
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three suppliers offer ruby co. different credit terms. bandy co. offers terms of 1.5/15, net 30. carryl co. offers terms of 1/10, net 30. platt co. offers terms of 2/10, net 60. ruby co. would have to borrow from a bank at an annual rate of 10% to take any cash discounts. based on a 360-day year, which of the following options would be most attractive for ruby co.?

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