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Laptech Inc. is a local supplier of Microchip Crystals is considering expanding globally which will lead to increased credit sales. While the firm expects an

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Laptech Inc. is a local supplier of Microchip Crystals is considering expanding globally which will lead to increased credit sales. While the firm expects an extra $8 million in sales if it expands its markets, it also knows that 10% of its sales will ultimately be uncollectible. In addition, collection costs will be 8% on all new sales and the firm's production costs are 60% of sales. Selling expenses are 15% of sales and Laptech has an opportunity cost of funds (before tax) of 12%. Laptech can turn its receivables 6 times per year. Is it worthwhile for Laptech to expand its Global reach by calculating the incremental change in benefits from a change in credit policy. ( Make sure you show the incremental change) Excel Template

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