{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Lesson #10, Assignment #2 - Case Solutions Input boxes in...

Info icon This preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Case Solutions Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
k"
Image of page 2
Chapter 20 Credit Policy at Howlett Industries Input Area: Sales Default rate Current policy $140,000,000 1.60% Option 1 $160,000,000 2.50% Option 2 $157,000,000 1.80% Option 3 $170,000,000 2.20% Variable costs 45% Interest rate 6.00% Output Area: Daily interest rate Current policy: Daily sales $383,561.64 Variable costs (daily) $172,602.74 Defaults on sales (daily) $6,136.99 Administrative costs (daily) $8,438.36 Interest rate 0.6090% NPV $32,074,287.51 Option 1: Daily sales $438,356.16 Variable costs (daily) $197,260.27 Defaults on sales (daily) $10,958.90 Administrative costs (daily) $14,027.40 Interest rate 0.6570% NPV $32,696,132.28 Option 2:
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Daily sales $430,136.99 Variable costs (daily) $193,561.64 Defaults on sales (daily) $7,742.47 Administrative costs (daily) $10,323.29 Interest rate 0.8180%
Image of page 4
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern