Question: Sale =$5,000,000 , COGS =35% of sales, DIH =25 Days, Credit terms from supplier = Net 35 (DPO), Credit terms to customer = Net 30

Sale

=$5,000,000

, COGS

=35%

of sales, DIH

=25

Days, Credit terms from supplier

=

Net 35 (DPO), Credit terms to customer

=

Net 30 (DSO). Interest rate is

6%

.\ Calculate the NPV of sales

Sale =$5,000,000, COGS =35% of sales, DIH =25 Days, Credit terms from supplier = Net 35( DPO), Credit terms to customer = Net 30 (DSO). Interest rate is 6%. Calculate the NPV of sales Sale =$5,000,000, COGS =35% of sales, DIH =25 Days, Credit terms from supplier = Net 35( DPO), Credit terms to customer = Net 30 (DSO). Interest rate is 6%. Calculate the NPV of sales

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