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Please Help 2. Credit Policy (15 Points.) XYZ Corporation wants to calculate the net present value of all cash flows it expects to receive under
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2. Credit Policy (15 Points.) XYZ Corporation wants 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 cash they get a 2% discount. Otherwise, customers have to pay the full price in 30 days. 90% of customers take advantage of the discount. (a) 10 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) 5 Points. If the opportunity cost of capital is 3% and all cash flows remain the same forever what is the net present value (NPV) of the cash flows XYZ expects to receive under the trade policy with the discountStep by Step Solution
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