In evaluating a proposal to extend credit , new customers will generate an average of $19000 per day in new sales. On average, he will pay in 30 days. The variable cost ratio (COGS) is 30% of sales, administration expenses are 4% of sales, and the discount rate interest in the MKT is 0.05. What is the NPV of one day's sales
In evaluating a proposal to extend credit , new customers will generate an average of $19000 per day in new sales. On average, he will pay in 30 days. The variable cost ratio (COGS) is 30% of sales, administration expenses are 4% of sales, and the discount rate interest in the MKT is 0.05. What is the NPV of one day's sales
Chapter13: Other Financing Alternatives
Section: Chapter Questions
Problem 1bM
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In evaluating a proposal to extend credit , new customers will generate an average of $19000 per day in new sales. On average, he will pay in 30 days. The variable cost ratio (COGS) is 30% of sales, administration expenses are 4% of sales, and the discount rate interest in the MKT is 0.05. What is the NPV of one day's sales
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