Emily Cheney is evaluating a proposal to extend credit to a group of new customers.The new customers will generate an average of $40,000 per day in new sales.On average,they will pay in 68 days.The variable cost ratio is 80%,collection expenses are 2% of sales,and the cost of capital is 10%.What is the NPV of one day's sales if Emily grants credit? Assume that there is no bad debt loss.

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The Answer of Emily Cheney is evaluating a proposal to extend credit to a group of new customers.The new customers will generate an average of $40,000 per day in new sales.On average,they will pay in 68 days.The variable cost ratio is 80%,collection expenses are 2% of sales,and the cost of capital is 10%.What is the NPV of one day's sales if Emily grants credit? Assume that there is no bad debt loss.

Emily Cheney Is Evaluating a Proposal to Extend Credit to a Group