By loosening its credit standards, the CFO of the Henleigh Company believes she can increase the net
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By loosening its credit standards, the CFO of the Henleigh Company believes she can increase the net present value of the firm’s daily cash flows by $10,000. If the increased daily NPV continues indefinitely, what is the aggregate net present value of the decision to lessen the credit standards? Assume a 365-day year. Henry uses a 8% cost of capital for credit policy decisions.
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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