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Excel Project G: G_Working Capital and Credit_Last Name.xlsx [sheet name: Credit Threshold Analysis] [Assignment]: Nino Inc. sells on terms of net 30. Cost of goods
Excel Project G: G_Working Capital and Credit_Last Name.xlsx [sheet name: Credit Threshold Analysis] [Assignment]: Nino Inc. sells on terms of net 30. Cost of goods sold is 85% of sales, and fixed costs are a further 5% of sales. Work out a table of NPV (per $100 sales) for various default rates ( 0 to 30% ) versus various average collection period ( 30 to 90 days). The average interest rate is 15% (for discounting). You may use a different rate. Calculation for the sample cell: 85+1.1540/365100(10.10)=$3.63 Comment: Use Data Whatif Analysis "Data Table" to fill the table. [Optional: use "Conditional Formatting" to add color bars to the cells. Use a scroll bar to change discount rate]
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