CoursHeroTranscribedText: QUESTION 1 10 A firm currently produces and sells 2,500 units every 60 days....
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CoursHeroTranscribedText: QUESTION 1 10 A firm currently produces and sells 2,500 units every 60 days. One unit costs $150 to produce and sells for $500. The firm currently offers all it's customers a "net 30" credit period and all customers pay on Day 60. In order to boost sales, the firm is considering Project D, which will simply add a window an offering a 10% discount for customers who pay immediately. Research suggests sales will increase sales to 2,600 units and approximately one quarter of all customers will pay on Day 0 and 75% will pay on Day 30. If the annualized cost of capital is 615. what is the NPV of Project D? The firm will continue to run to perpetuity. (Assume production and sales occur on Day 0 and repeat every 30 days) $4.04 million O $2.25 million $3.35 million $3.75 million QUESTION 2 10 p
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