ABC is deciding if credit should be extended to its customers. It has determined that there is a 95% probability that it would collect the full payment from a credit sale in one month. The receivable is financed at an APR of 7.10%. On credit sales of $3,000 per unit, the present value of costs are expected to be 84.50% of the sales price. What is the present value of the expected profit on the sale of each unit? Explain with all steps a.-$16.76 b.-$166.76 c.$126.06 d.$254.90 e.$298.24

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A: = Sales*(selling price- cost price) = 2,150*(53-31)= 47,300

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A: Cash flows are the cash generated from the operation of the business organization. In other words,…

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Q: The APY of a credit card is 62% per year. Payments are monthly. What is the APR of this car.

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A: FIRM OPERATING CYCLE Firm Operating Cycle is the Total of Account Receivable Collection Period &…

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A: 1. Calculate the current level of trade credit:

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.