Solve  yellow values 

 

a) Effective Annual Rate (EAR) b) Average Collection Period Notional purchase Discount (%) Days difference 1,000.00 Gross revenue 16,000,000 0.25% Avg. receivables before new policy 10 % paying early 40.0% Avg. receivables after new policy Discount ($) Rate (%) Change in receivables Cost of capital 7.5% Days difference in 1 year Projected savings in capital costs minus: discounts EAR Projected savings net of discounts Gross margin 33.0% Gross revenues must rise by: - in dollars -in percent Note: customers must pay within 20 days of invoice. To get the discount, they must pay within