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What would be the average collection period

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Question - XYZ Corporation has a 10% opportunity cost of funds.  The firm has annual sales of $30 million a year, which are 80% on credit and spread evenly over the year.  The average collection period is currently 60 days.  XYZ is considering to offer terms of "2/10, net 60". What would be the average collection period, if 70% of its credit sales customers will take the discount?

Reference no: EM133136921

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