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An entrepreneur who is considering purchasing a business is analyzing the company's accounts receivable. The following table summarizes her findings: Age of Accounts Amount Probability
An entrepreneur who is considering purchasing a business is analyzing the company's accounts receivable. The following table summarizes her findings: Age of Accounts Amount Probability of Collection Value 0 - 30 days $12,000 .96 31 - 60 days $ 4,000 .87 61 - 90 days $ 2,500 .71 91 - 120 days $ 1,400 .65 121+ days $ 800 .24 How much should this potential buyer be willing to pay for these accounts receivable? (0.5 points) What is the difference between the value and the amount of accounts receivable? (0.7 points)
a. How much should this potential buyer be willing to pay for these accounts receivable? ( 0.5 points) b. What is the difference between the value and the amount of accounts receivable? ( 0.7 points)Step by Step Solution
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