Question
Your firm expects to receive a $20,000 payment from a supplier in 25 days. Calculate the increase in the cash inflow's present value if the
Your firm expects to receive a $20,000 payment from a supplier in 25 days. Calculate the increase in the cash inflow's present value if the cash inflow can be collected 5 days sooner. Assume an annual discount rate of 10%.
| a. | -$56.18 | |
| b. | $27.07 | |
| c. | $19,9972.64 | |
| d. | $18,587.25 |
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Financial Management Principles And Applications
Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.
10th Edition
0131450654, 9780131450653
