Home Insert Page Layout Formulas Data Review View Tell me what you want to do.. Sign in File Ruler Formula Bar 5wood Split [ View Side by Side 1. Hide EGI Synchronous Scrolling Normal Page Break Page Custom Gridlines Headings Zoom 100% Zoom to New Arrange Freeze Switch Macros Preview Layout Views Selection Window All Panes . Unhide BA Reset Window Position Windows Workbook Views Show Zoom Window Macros G34 X v fx B C D E F G H I J K L M N P Q S T U V W AA AB AC AD AE AF AG AH 1 Chapter 12 Homework A Old investment in A/R: Daily sales Average age of A/R Contribution margin 9% Old investment in A/R New investment in A/R: Daily sales Average age of A/R Contribution margin $% New investment in A/R Net decrease in A/R Profit on change in collection period: New daily sales Change in average age of A/R Contribution margin % Profit on change Time Zero Amounts Years 1 to Infinity Change in A/R Admin costs 27 Profit on change in collection period Bad debts Other W/C change Contribution margin 28 Total Discounts 29 Tax on above 30 Total 31 32 33 B NPV Calculation: 34 Present value of cash inflows 35 36 Present value of cash outflows Net Present Value 37 38 IRR Calculation: 39 Annual cashflow 40 nvestment in A/R 41 Internal Rate of Return 42 43 44 NAB Calculation: 45 Allowed annual cost Actual annual cost 46 Net Annual Benefit 47 C