User Account

All Pages

Npv of extending credit to the new customer

Assignment Help Finance Basics
Reference no: EM132235042

A credit analyst has received a $10,000 order from a new customer. The cost of filling the order (ie COGS) is $8000 and collection cost are $200. The credit analyst notes that COGS will be paid immediately. Further, it is assumed that the customer will repay the trade credit obligation in 60 days. It is also assumed that the collection cost will be incurred in 60 days. If the appropriate discount rate is 8%, what is the NPV of extending credit to the new customer?

Reference no: EM132235042

Questions Cloud

What are the differences in loan assumptions : What are the differences in loan assumptions and how it can affect the seller?
Suppose you begin saving for your retirement by depositing : Suppose you begin saving for your retirement by depositing $2000. per year in an ira .if the interest rate is 7.5 % how much will you have in 40 years.
Explain how the organization can use the ansoffs growth : Explain how the organization can use the Ansoff's growth-vector matrix to derive corporate strategy directions for future plansof the organization. Explain how the organization can use Directional policy matrix (GE matrix) and make effective decision..
Evaluate the source and explain why it is a credible source : Technology makes vast amounts of information (and misinformation) readily available. The challenge is navigating this sea of information.
Npv of extending credit to the new customer : If the appropriate discount rate is 8%, what is the NPV of extending credit to the new customer?
What is the geometric average return for period : Your portfolio has provided you with returns of 11.4 percent, 6.2 percent, -.7 percent, and 14.6 percent over the past four years, respectively
Why is global warming so controversial : Have you ever had foodborne illness? What do you think caused it? Of the foodborne pathogens what is the most common and why?
Explain method use to protect yourself against food borne : Describe and explain in detail one method you use to protect yourself against Food borne or Waterborne illnesses. Make sure to indicate why using this technique
Describe the recent outbreaks of contaminated food : Describe the recent outbreaks of contaminated food. What was the source of contamination, and what were the resulting symptoms that the victims suffered?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd