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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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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