New behaviors acquired during experiential training will fade out unless the work environment to which participants return supports new behaviors and participants understand and accept the fact that outstanding performance will require those behaviors

Incremental cash flows represent the additional cash flows expected as a direct result of the proposed project

Indicate whether the statement is true or false

A supplier to your firm offers credit terms of 2/15 net 45 however, your firm never takes advantage of the discount but instead always pays full price on day 45

Your finance intern claims that your firm would be better off borrowing money from an existing but little used line of credit at a current annualized rate of 8%, pay the firm providing credit at the end of the discount period (day 15 ) and to then repay the line of credit 30 days later on day 45. She argues that the cost to your firm would be lower than current practice. What is the effective cost to the firm of not utilizing the discount vs, the cost of borrowing money to take advantage of the discount? Please show your work and provide your answers in percentage terms.