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In an analysis of alternative credit-management policies, which of the following components will cause the net present value of receivables on credit sales to increase, if everything else remains constant?

In an analysis of alternative credit-management policies, which of the following components will cause the net present value of receivables on credit sales to increase, if everything else remains constant?
A . A tougher collections policy that reduces the bad debt loss ratio.
B . A higher cost per unit sold.
C . A longer average collection period.
D . An increase in the cost of capital.

Answer: A

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