Problem 20.14 – Credit Policy Evaluation
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Given the information on both policies… figure out the NPV.
Calculator Preview
Your numbers will vary.
Given the information on both policies… figure out the NPV.
Your numbers will vary.
Calculate the interest rates per month at 1%, 1.5%, and for only new customers.
Your numbers will vary.
Given the information on the computer training packages price, cost of production, terms, units, and interest rate… find if they should extend credit on one-time order, profit or loss, break-even probability, the present value of the sale, and break-even probability.
Your numbers will vary.
Estimate the expected profit of order of acceptance and should Branding Iron accept the order?
Your numbers will vary.
Determine the impact of changing credit policy on the expected profit and if Mr. Procustes adopt the more stringent policy.
Your numbers will vary.
Find the expected profits of Sur City switching to cash-on-delivery as well as how your answer would change if a customer is granted credit and is expected to generate repeat orders in the next 6 months.
Your numbers will vary.
Calculate the company’s ledger and available balance with its bank.
Your numbers will vary.
Given the amount of payments a day, average payment size, bank’s charge for operations, and the interest rate… find out the daily interest saved, if it makes sense to adopt the system, and the minimum reduction in time.
Your numbers will vary.
Given the information on the company, figure out if the lox-box system will reduce float, the daily interest savings, and the maximum monthly fee.
Your numbers will vary.
Given the information on the bank account located in New York… figure out the net daily benefit of opening the new account.
Your numbers will vary.