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please answer all parts! thanks so much!! 2. Credit Policy (20 Points.) XYZ Corporation wit to calculate the net present value of all cash flows

image text in transcribedplease answer all parts! thanks so much!!
2. Credit Policy (20 Points.) XYZ Corporation wit to calculate the net present value of all cash flows it expects to receive under a particular credit policy. Specifically, XYZ sells 800 units of its product to 800 different individuals. The price of the product is $100. The cost of producing the product is $50. If a customer pays the price immediately in ch they put a 2% discount. Otherwise, customers have to pay the full price in 30 days. 90% of customers take advantage of the discount. (a) 7 Points. Given this information, fill in the table below describing all cash flows incurred now and all cash flows incurred 30 days from now. Describe Cash Flow Under This Policy Now In 30 Days Total (b) 7 Points. Suppose XYZ plans to introduce an alternative credit policy where the company eliminates the discount for customers who pay in cash. Under this scenario, no customer would pay immediately as there is no benefit in doing so. Thus, all customers who purchase the product will pay in full in 30 days. In addition, the company projects that it would lose out some customers and it would thus only produce 700 units as opposed to the 800 under the discount for ch credit policy. What are all cash flows associated with this credit policy? Fill in the table below. Describe Cash Flow Under This Policy Now In 30 Days Total (e) 6 Points. If the opportunity cost of capital is 3% and all cash flows retain the same forever what is the net present value (NPV) of the cash flows XYZ expects to receive under the trade policy with the discount (part 2) and under the trade policy without the discount (part b). Based on your results, which credit policy

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