What is the effective or equivalent annual cost of the trade credit?

The Thompson Corporation projects an increase in sales from $1 million to $3 million but it needs a Show more

The Thompson Corporation projects an increase in sales from $1 million to $3 million but it needs an additional $300000 of current assets to support this expansion. Thompson can finance the expansion by no longer taking discounts thus increasing accounts payable. Thompson purchases under terms of 3/10 net 30 but it can delay payment for an additional 35 days paying in 65 days and thus becoming 35 days past due without a penalty because of its suppliers currently have excess capacity. What is the effective or equivalent annual cost of the trade credit? Round your answers to two decimal places. Assume 365 days in year for your calculations. Do not round intermediate calculations Show less