We expect that we can receive annual incremental income


We expect that we can receive annual incremental income after taxes of $25,000, including an adjustment for uncollectible accounts. What is the maximum commitment to A/R that we should be willing to assume if our firm's minimum required after-tax return is 8%?

Select one: a. $36,000 b. $312,500 c. $168,000 d. $180,000

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Financial Management: We expect that we can receive annual incremental income
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