Terms of sale x company sells its goods only on a cash

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Terms of sale: X company sells its goods only on a cash basis. Its marketing manager believes that by offering credit terms of 2/10 net 30, the company's revenues will increase sales 3% without significant additional costs. If the company's current profit margin is 5% and its cost of capital 9% evaluate the desirability of this change.

Reference no: EM13616135

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