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A firm has made a credit sales with the following credit terms: $2,000,000 order, 30-day credit terms VCR (0.30) = Variable cost ratio/$ of sales
A firm has made a credit sales with the following credit terms: $2,000,000 order, 30-day credit terms VCR (0.30) = Variable cost ratio/$ of sales EXP (0.05/CP) = Expenses for credit administration and collection/$ of sales i (0.10/365) = Daily interest rate CP (45 days) = Collection period for sale a) Calculate the variable cost of this sales b) Calculate the present value of this sales c) Calculate the NPV of this sales
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