By loosening its credit standards,the Henry Company believes its daily NPV will increase by $9,000.Henry uses a 10% cost of capital for credit policy decisions.If the increased daily NPV continues indefinitely,what is the aggregate NPV of the decision to lessen the credit standards? Assume a 365-day year.
A) $3,285,000
B) $9,000,000
C) $19,328,500
D) $32,850,000
E) $46,985,000
Correct Answer:
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