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Unformatted text preview: which lengthens the cash conversion period: 1. Draw timelines for the old timing versus the new timing assuming DSO improved from 40 days to 30 days. 2. Calculate the daily NPV of each (assume k =5%). 3. Calculate the difference. 4. Assume the change is permanent and calculate the value as a perpetuity. CF Cash Flow Per Period i Interest Rate Per Period PV Perp = =...
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This note was uploaded on 01/24/2012 for the course FIN 4260 taught by Professor Victorwakeling during the Spring '12 term at Kennesaw.
- Spring '12