Assignment title: Management
Question: Mississippi Delta Inc. has been selling switching equipment to computer companies on net 30 terms, in which payment is expected by thirty days from the invoice date. Concerned about deteriorating collection patterns, the credit manager has divided customers into two groups for examination purpose; prompt payers and laggards. Prompt payers [80% of Mississippi Delta's customers] pay, on average, in thirty-five days, versus a 72-day average for the laggards. The manager wonders if the credit terms should be modified to include a two percent cash discount on invoices paid within 10 days. The average invoice is the same for both groups, roughly 4,000 dollars. The manager expects fifty percent of the prompt payers to pay in exactly ten days and the average on the other half to slip to 40 days. He thinks that the twenty percent of the laggards will pay is ten days and the average on the others will slip to 70 days. Given these forecasts, he is not sure that the lost revenue from discount takers (who would then pay only 98 percent of the invoiced dollar amount) justifies the improved collection. The company's yearly cost of capital is eleven percent.
[A] Using net present value calculations show the present value of the present collection experience.
[B] Based on your net present value analysis, should Mississippi Delta Inc. adopt the cash discount?
[C] Determine the net present value of the proposed 2/10, net 30 terms.
Before completing your post, review the Week 1: Biomes & Diversity interactive video(see link below), which is designed to assist you in understanding more about this week's topic and to help you organize your initial post. Also, watch the video "Choosing Articles and Revising Searches(see link below)," which defines the difference between scholarly, reputable, and non-reputable resources.
As you have learned in the readings, extinction is a natural selection process and humans are often responsible for accelerating this process. In your initial post this week, address whether or not we as humans should be concerned with the extinction rate, and justify your decision. Additionally, discuss whether or not humans should strive to preserve representative samples of all biomes on the planet, and if so, how that might be accomplished.
Your initial post should be at least 250 words in length. Utilize at least two scholarly or reputable resources and your textbook to support your claims. Cite your sources in APA format. Quoted text should constitute no more than ten percent of your post.
REFERENCE:
https://bridgepoint.equella.ecollege.com/curriculum/file/7fa72cd5-5ff6-4f9b-bcab-f7b117704fca/1/AshfordBiomes%26Diversity.zip/story.html
https://ashford.mediaspace.kaltura.com/media/Choosing+articles+and+revising+searches/0_exw6i47t
Turk, J., & Bensel, T. (2014).Contemporary environmental issues (2nd ed.) CH 1 and CH 2