Working capital maagment – receivables and payables

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October 23, 2018 at 11:03 pm #479613
alinaqvi111
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While calculating the annual effective rate of discount, how is it practically and theoretically and practically possible that the number of period comes in decimal ?
Suppose there are 25 days and the no of days in a year is assumed as 365,the period will be 14.6. Can we make it 15 ?
October 24, 2018 at 9:14 am #479630
John Moffat
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No. We are looking at averages. Sometimes there may be 14 days and sometimes 15 days, but on average 14.6 days.
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