1. 15.

Credit Policy Evaluation [LO 20.2] Cudmirrah Foods currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. Based on the following information, what do you recommend? The required return is 0.85 per cent per month.

Transcribed Image Text:

Current policy New policy Price per unit $ 131 $ 133 Cost per unit $ 96 $ 98 Unit sales per month 1320 1340