Firm E currently offers "10/0, net 30" credit periods for their customers. They are considering...
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Firm E currently offers "10/0, net 30" credit periods for their customers. They are considering Project N, which will simply remove the discount window and only offer "net 30" in the future. Firm E currently produces and sells 12.000 units on day zero. Each unit costs $4 to produce and sells for $9. At present. 30% of customers paimmediately and 20% pay on Day 30. Without the discount, the firm predicts only 11.500 in sales, and all customers will pay on Day 30. The annualized cost of capital is 1296, What is the NPV of Project N? $51 680 O $74,000 $46,840 $26,420 Firm E currently offers "10/0, net 30" credit periods for their customers. They are considering Project N, which will simply remove the discount window and only offer "net 30" in the future. Firm E currently produces and sells 12.000 units on day zero. Each unit costs $4 to produce and sells for $9. At present. 30% of customers paimmediately and 20% pay on Day 30. Without the discount, the firm predicts only 11.500 in sales, and all customers will pay on Day 30. The annualized cost of capital is 1296, What is the NPV of Project N? $51 680 O $74,000 $46,840 $26,420
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