Jessica Gonzalez is evaluating a proposal to extend credit to a group of new customers. The...

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Jessica Gonzalez is evaluating a proposal to extend credit to a group of new customers. The new customers will generate an average of $50,000 per day in new sales. On average, they will pay in 58 days. The variable cost ratio is 90%, collection expenses are 3% of sales, and the cost of capital is 11%. What is the NPV of one day's sales if Jesse grants credit? Assume that there is no bad debt loss. Jessica Gonzalez is evaluating a proposal to extend credit to a group of new customers. The new customers will generate an average of $50,000 per day in new sales. On average, they will pay in 58 days. The variable cost ratio is 90%, collection expenses are 3% of sales, and the cost of capital is 11%. What is the NPV of one day's sales if Jesse grants credit? Assume that there is no bad debt loss.

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