but its suppliers actually allow it to repay in 45 days. Estimate the annualized opportunity cost for not taking advantage of the 2 percent discount for the quick 10-day payment.

Suppose Fastest Company is offered accounts payable terms of “2 percent, 10 days, net 30 days” but its suppliers actually allow it to repay in 45 days. Estimate the annualized opportunity cost for not taking advantage of the 2 percent discount for the quick 10-day payment.

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