Correct expression for the payable deferral period

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Reference no: EM132016107

1. Which of the following is the correct expression for the payable deferral period ?

a. Payables turnover / 360

b. Cost of goods sold / Payables

c. Daily credit purchases / Accounts payable

d. Accounts payable / Daily credit purchases

e. Payables turnover × 360

2. Sunshine Inc. tightened its credit policy, resulting in a $10 change in net present value (NPV) on a daily basis. If Sunshine's expected return is 8%, then the change in the value of the firm is_____. (Note: Assume 360 days in a year)?

a. $5,000

b. $34,000

c. $20,000

d. $45,000

e. $60,000

Reference no: EM132016107

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