The Sales Manager of AB Limited suggests that if credit period is given for 1.5 months then
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● The Sales Manager of AB Limited suggests that if credit period is given for 1.5 months then sales may likely to increase by `1,20,000 per annum. Cost of sales amounted to 90% of sales. The risk of non-payment is 5%. Income tax rate is 30%. The expected Return on Investment is `3,375 (after tax). Should the company accept the suggestion of Sales Manager?
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Related Book For
Financial Management
ISBN: 9789352605606
1st Edition
Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana
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