User Account

All Pages

What is the npv to crisps of offering credit to bigbag

Assignment Help Finance Basics
Reference no: EM132041125

Crisps has received an order for 16500 bags of potato chips from BigBag. Crisps views BigBag to be a one-time customer. Crisps sells its large bags of potato chips for $1.90 each, and calculates its internal cost for the product at $0.95 each. 

Market research estimates that there is a 30% chance that BigBag will pay in full what it owes. 

Based on this information, what is the NPV to Crisps of offering credit to BigBag?

Reference no: EM132041125

Questions Cloud

What types of vulnerabilities need to be addressed : What challenges will need to be addressed with the U.S. Navy project described in your scenario? What types of vulnerabilities need to be addressed.
Calculate the next expected dividend : The last dividend was D0 = 0.50($5.39) = $2.70. Calculate the next expected dividend, D1, assuming that the past growth rate continues.
Determine income on an accrual basis : The following data relate to Jones Company for the year ended December 31, 2009:
Calculate the npv of credit decision : Based on this information, calculate the NPV of this credit decision?
What is the npv to crisps of offering credit to bigbag : Based on this information, what is the NPV to Crisps of offering credit to BigBag?
Discuss your understanding of risk return : Briefly discuss your understanding of risk return and capital structure to the Law of One Price.
Prepare a presentation to address the given points : Prepare an 8-12-slide presentation to address these points. The presentation planned should last about half an hour. Include speaker notes in the presentation.
How can she take more proactive options strategy : How can she take a more proactive options strategy to achieve her goal in the next month?
Computing the annual interest rate implied : Jones is trying decide whether to take Triumph up on its offer to pay early or instead to wait until the last possible day to pay the amount in full.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd