A firm does not currently allow customers to purchase on credit. It sells a toaster oven for

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A firm does not currently allow customers to purchase on credit. It sells a toaster oven for $35 (P) which has a variable cost per unit of $15 (v). The firm currently sells 100 units (Q) each month. The firm is considering allowing purchases on credit for up to 30 days with no additional fees or interest. It projects that 120 units (Q) will be sold if credit is extended for 30 days. The required return for the firm is 2.5%. What is the present value of the monthly incremental cashflow? The answer should be $16,000

Posted Date: May 18, 2024 04:07 AM

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A firm does not currently allow customers to purchase on credit. It sells a toaster oven for

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