Finance Chapter 28 Homework Npv 2675115821 Option Daily Sales Variable Costs

subject Type Homework Help
subject Pages 1
subject Words 94
subject Authors Bradford Jordan, Jeffrey Jaffe, Randolph Westerfield, Stephen Ross

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Input Area:
Sales Default rate Administrative costs Receivables period
Current policy $ 113,000,000 2.10% 1.60% 38
Option 1 $ 129,000,000 2.60% 2.40% 41
Option 2 $ 127,000,000 2.20% 1.90% 51
Option 3 $ 130,000,000 2.50% 2.10% 49
Variable costs 45%
Interest rate 6.00%
Output Area:
Option 1:
Daily sales 353,424.66$
Variable costs (daily) 159,041.10$
Option 2:
Daily sales 347,945.21$
Variable costs (daily) 156,575.34$
Option 3:
Daily sales 356,164.38$
Credit Policy at Braam Industries
Chapter 28

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