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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › management of working capital( Accounts receivables) _ Example 2
In example 1, we calculated effective disc and converted it in 12 months rate.
But in example 2 , we are calculating disc as cost and not converting it to 12 months effective rate. Then how is is a per annum cost sir?
The second example clearly states what is the net cost or benefit of the change in policy?
Not an effective % cost as per example 1
It’s asking for something completely different
Is the discount worth doing
Why do you think it’s a cost per annum?