Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In evaluating a proposal to extend credit, new customers will generate an average of OMR 17,000 per day in new sales. On average, he will

image text in transcribed
image text in transcribed
image text in transcribed
In evaluating a proposal to extend credit, new customers will generate an average of OMR 17,000 per day in new sales. On average, he will pay in 30 days. The variable cost ratio (COGS) is 70% of sales, administration expenses are 2% of sales, and the discount rate (Annual Interest rate in the MKT is 8%). What is the NPV of one day's sales Select one: O a. $4,651 b. $2,951 c. $2,521, 808 Od.Non of the options Jalan Manufacturing forecasts that its production will require 122,000 tons of corn over its planning period. Demand for Jalan products is stable over time. Ordering costs amount to an average of $400 per order. Holding costs are estimated at $200 per ton of bauxite. The total cost (INVENTORY COST) at Optimal Quantity to Order (EOQ) for Jalan Manufacturing is Select one: O a. 698.5 Ton b. $698.5 O c. 100,144 Ton O d. $139,714 A firm has an operating cycle of 133 days and accounts payable turnover of 5. What is the firm's cash conversion cycle? Select one: a. 60 Days b. 40 Days O c. None of the options O d. 50 Days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Routledge Handbook Of Social And Sustainable Finance

Authors: Othmar M. Lehner

1st Edition

1138343773, 978-1138343771

More Books

Students also viewed these Finance questions