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a one time transaction for sales of $250,000, COGS associated with sales $ 100,000, operating cycle...

a one time transaction for sales of $250,000, COGS associated with sales $ 100,000, operating cycle 60 Days, account payable 12000, Discount rate (simple) 5.66%

1) What is NPV associated with the above transaction

2) With else constant, what level of payable will allow the firm to have a CCC of 0 Days?

3) Suppose 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% simple.

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ekkarill92 answered 2 years ago
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