The Credit Decision Usually Includes Riskier Customers

question 17

Multiple Choice

The credit decision usually includes riskier customers. The credit decision should adjust for this by:

• A) determining the probability that customers will pay, reducing the expected cash flow.
• B) discounting the net cash flows at a higher discount rate.
• C) discounting the cash inflow at a higher discount rate.
• D) delaying collections on these customers.
• E) speeding up deliveries to riskier customers.

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