Question
Customer pays 60% upfront, 20% on customization completion (month 5), and 20% at end of PCS (month 24). Market borrowing rate for the customer is 10% p.a.; TechServe’s credit-adjusted rate is 11% p.a. Payment timing is a negotiated convenience for the customer. Does an Significant Financing Component (SF
- C exist and which rate is appropriate?
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