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Homework answers / question archive / Malingumu , a kiosk owner, buys all his merchandise from halimoja wholesalers

Malingumu , a kiosk owner, buys all his merchandise from halimoja wholesalers

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Malingumu , a kiosk owner, buys all his merchandise from halimoja

wholesalers. Due to the long standing relationship halimoja offers malingumu 30 days credit which has recently been reviewed to 2/10 net 30. Normally malingumu has been setting his accounts in 35 days without a penalt. Malingumu has an average credit history and believes that a short-term time of credit from a bank will attract interest in the 23%-26% per annum region. He is therefore resigned to take up the cash discount. Is he making the right choice?

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