What Approximate Value Should a Firm Put on Being Able

question 141

Multiple Choice

What approximate value should a firm put on being able to permanently reduce the length of its collection period by 1 day if annual sales (all on credit) are $5,000,000 and the appropriate opportunity cost is 10% annually?

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

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Definitions:

Neutral Faces

Facial expressions that do not display any clear emotion and are often used as a control in studies on emotion and facial recognition.

Socialization

The process through which individuals learn skills, knowledge, values, motives, and roles appropriate to their positions in a group or society.

Distribution

The process of distributing or spreading something, often related to the supply of goods to various places for sale.

Negative Consequences

Unfavorable results or outcomes that occur as a direct or indirect result of an action or decision.