What Approximate Value Should a Firm Put on Being Able

question 83

Multiple Choice

What approximate value should a firm put on being able to permanently reduce the length of its collection period by one day if annual sales (all on credit) are $5,000,000 and the appropriate opportunity cost is 10 percent annually?

• A)$1,370
• B)$15,068
• C)$13,700
• D)$50,000

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Definitions:

Communicate

The act of conveying information or expressing ideas and feelings through verbal or nonverbal means.

Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing strategies.

Psychographics

The study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.