Question
CBA plans to sell its products to a group of customers that will bring in $ 100,000 in new annual sales, of which 9% will
CBA plans to sell its products to a group of customers that will bring in $ 100,000 in new annual sales, of which 9% will be bad (that is, that money will not be recovered). Suppose that the cost to collect these accounts amounts to 6%, that the cost to produce and sell the product is 75% of sales. The company has a cash cycle of 20 days, the funds to finance the CCE have a cost of 15% (days of the period 360). In addition, the tax rate is 30%. Finally, the investment required for this new client is $ 50,000. What do you recommend to the company? You must accept the client knowing that the $ 50,000 that you would invest in this client could be placed in a financial product that would generate 12.5% per year. What is the best alternative? The new customer or the financial product. Justify your answer numerically. (excell preferrably)
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