Discuss the implementation of this new credit policy


The Imperial Sugar Company, located in Honolulu, Hawaii has determined that by implementing a new policy in its credit terms, it could potentially increase its NPV from $0.40 per day to $0.50 per day. Assume a 365 day year. Assume that the company's annual opportunity cost of capital is 6%. How much of an increase, if any, would the shareholders of the company realize from the implementation of this new credit policy?

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Finance Basics: Discuss the implementation of this new credit policy
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