You Are Calculating the NPV of One Day's Sales Associated

question 5

Multiple Choice

You are calculating the NPV of one day's sales associated with a given credit policy that does not offer a discount and has an average collection period of 45 days.You should discount variable costs _____ days and credit administration and collection expenses ______ days.

• A)0,0
• B)0,45
• C)45,45
• D)45,0

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Definitions:

Delegation

The process of assigning responsibility and authority to others to carry out specific tasks while maintaining accountability for the outcome.

Empower People

The act of granting individuals or groups more autonomy and control over their work or personal lives, often focusing on enabling them to make decisions and contribute to important processes or outcomes.

Organization Levels

Refers to the hierarchy within an organization, starting from the top with the board of directors or CEO, moving down through middle management, and reaching the operational employees at the bottom.

Centralization

The concentration of decision-making authority at the top levels of an organizational hierarchy.