Question: Compute the new average collection period based on the terms in Table 2 and the results of the pilot study. Use the simplifying assumption that

Compute the new average collection period based on the terms in Table 2 and the results of the pilot study. Use the simplifying assumption that under the new policies all customers will all pay at the end of the 10th day or the end of the 30th i.e., for the 3/15, net 30 3% 15 days = 0.5 day 87% 30 days = 26.1 days 26.6 days average collection period Show the average collection period for 1%10n30

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