Assuming cost of capital is 12 then what is the pocket


Problem: A customer purchases 10,000/year of products at 40% contribution margin. Technical service cost to help the customer is $1500/year while net working capital is 20% of revenues.

Required:

Assuming cost of capital is 12% then what is the pocket margin associated with the customer?

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Finance Basics: Assuming cost of capital is 12 then what is the pocket
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