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Can we add one more calculation like
Cost of finance who do not take discount and pay in 60days
$87.6M * 5.5% * 60/365 ?
Then total cost would be $1011000 .
Pls correct me if my thinking is wrong 😛
In section C , Receivable Mgt
why don’t we consider cost of short term finance 5.5% in calculation of cost section .
75% of customer took 60days credit , do we need to finance for that 60days ?
Thanks
