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By loosening its credit standards, the CFO of the Henleigh Company believes she can increase the net present value of the firms daily cash flows
By loosening its credit standards, the CFO of the Henleigh Company believes she can increase the net present value of the firms daily cash flows by $10,000. If the increased daily NPV continues indefinitely, what is the aggregate net present value of the decision to lessen the credit standards? Assume a 365-day year. Henry uses a 8% cost of capital for credit policy decisions.
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