财务管理 第二十章 课件.ppt

* Obviously, the timeline is not drawn to scale, and the distance between each point would differ across companies. Lecture Tip: Some students might question why the amount of investment in accounts receivables is the daily sales times ACP, since “sales” contains cost plus profit, but the out-of-pocket investment required would be the cost of the receivables, excluding the profit reflected in the receivables balance. Point out that the analysis refers to the funds committed to this balance. If the receivables balance could be reduced by ten days, these ten days’ receivables would be immediately freed up. Therefore, the investment in receivables should be viewed in terms of the funds that are tied up. * Cash discounts are designed to shorten the receivables period; however, you reduce your net sales level when discounts are taken, unless the discount entices new customers to purchase. Lecture Tip: Some students will want to use the total time period (45 days); so it is important to emphasize that the company is only borrowing the money at the discount rate for the period between the end of the discount period and the net period. The last statement on the slide implicitly assumes that the customer eventually pays and does so on time. * Lecture Tip: It’s useful to point out that the process for determining the NPV of a credit policy switch is the same as the process for determining the NPV of a capital asset replacement (or “switch”). The analysis involves a comparison of the marginal costs with the marginal benefits to be realized from the switch. If a company liberalizes credit terms, the present value of the marginal profit is compared to the immediate investment in a higher receivables balance. If a company tightens credit, lower sales should be expected. The present value of the reduction in profit is compared to the cash realized from the lower amount invested in receivables. * 100*1000=amount of immediate CF needed to cover the extension in time to pay. * C