What is the npv of one day sales

Assignment Help Business Management
Reference no: EM132233623

Firm Z is evaluating a proposal to extend credit to a group of new customers. The new customers will generate an average of $90,000 per day in new sales. On average, they will pay in 30 days. The variable cost ratio (i.e., COGS) is 80% of sales, collection expenses are 5% of sales, and the discount rate is 8%. Assume that the variable cost occur upfront while collection cost occur on the date in which the customer's payment is received. What is the NPV of one day's sales if Firm C grants credit.Assume there is no bad debt loss.

Reference no: EM132233623

What differentiates the chosen business from others

What differentiates the chosen business from others, and the markets the business serves? Provide a written company description. Be sure to include all the basic componen

Who are major competitor in industry that you are interested

Who are the major competitors in the industry that you are interested in? Please provide at least 3 competitors and include the number of employees, business line product,

Determine expected macroeconomic conditions

Assume you were asked to determine expected macroeconomic conditions for the next three months. What specific economic indicators would you evaluate? Provide a rationale for

Perceptual map-company position against its competitors

Prepare a positioning statement. Include a perceptual map that shows your company's position against its competitors. From this map, create a statement that depicts your pos

Chemical manufacturer

The Dosit Corporation is a chemical manufacturer, and its products are sold to other manufacturers and used in household cleaning products. The company has 290 employees with

What is job bidding

Which of the following terms refers to a procedure commonly used during layoffs, in which employees with greater seniority whose jobs are eliminated displace employees with

Analysis on wal-mart

Wal-Mart is the largest corporation in the world, and it has obviously enjoyed tremendous success. But while many welcome its location in their communities, others do not.

Ethical scales in situation

In the situation described above, is the firm acting unethically in any way and should motive or conduct carry greater weight on the ethical scales in this situation?


Write a Review

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!

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