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Your firm sells expensive water bottles. The price for the water bottles is $ 5 0 per unit and variable cost is $ 2 0
Your firm sells expensive water bottles. The price for the water bottles is $ per unit and variable cost is $ per unit. Your firm currently offers customers credit terms of net but you are thinking about longer credit terms to increase sales. Sales quantity now is units. The new credit terms would be net and you expect sales to increase Your firms cost of funds is What is the value NPV of the change in credit terms?
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