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Question
Sunshine Inc. recently tightened its credit policy. The credit policy change resulted in an increase of $10 per day on a net present value (NPV) basis. Sunshine's required rate of return is 8 percent. What was the effect of the credit policy change on the firm's value? In your computations, assume a 360-day year.
a. $288
b. $12,500
c. $36,000
d. $45,000
e. $3,600
Answer
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Related questions
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