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has an all-cash credit policy. It is considering making a change in the credit p turn will be calculated based on the effective annual rate of 8% (annually con ur answer is +$123,456.78, enter 123456.78. If your answer is -$123,456.78, th Current policy New policy $50 $56 $38 $44 50,000 55,000

has an all-cash credit policy. It is considering making a change in the credit p turn will be calculated based on the effective annual rate of 8% (annually con ur answer is +$123,456.78, enter 123456.78. If your answer is -$123,456.78, th Current policy New policy $50 $56 $38 $44 50,000 55,000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Kobanê Corp. currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 120 days (Assume there are 30 days in each month). The required return will be calculated based on the effective annual rate of 8% (annually compounded). Calculate the NPV of the decision to change credit policy (Do not use the $ sign. If your answer is +$123,456.78, enter 123456.78. If your answer is -$123,456.78, then enter -123456.78). Current policy New policy Price per unit $50 $56 Cost per unit $38 $44 Unit sales per quarter 50,000 55,000 Numeric Response
Transcribed Image Text:Kobanê Corp. currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 120 days (Assume there are 30 days in each month). The required return will be calculated based on the effective annual rate of 8% (annually compounded). Calculate the NPV of the decision to change credit policy (Do not use the $ sign. If your answer is +$123,456.78, enter 123456.78. If your answer is -$123,456.78, then enter -123456.78). Current policy New policy Price per unit $50 $56 Cost per unit $38 $44 Unit sales per quarter 50,000 55,000 Numeric Response
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