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Unformatted text preview: NPV (With the fixed charge) $(12,014.50) The lockbox system should not be accepted. Chapter 28 Question 12 Input Area: Quantity sold 3,000 Cash price $90.00 Days' credit 30 Credit price $91.84 Discount period 10 Required return 1% d. Default rate 10% Output Area: a. Terms 2 / 10 net 30 b. Maximum accounts receivable $270,000 c. Since the quantity sold does not change, variable cost is the same under either plan. d.-8% , the NPV will be negative. NPV $(2,473,200) The breakeven credit price is $101.00 , which implies the breakeven discount is 10.89% The NPV at this discount rate is $0.00 No, because d - =...
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