Patton Corp. currently has an all-cash credit policy. It is considering making a change in the credit

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Patton Corp. 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 .95 percent per month.

Current New Policy Policy Price per unit Cost per unit Unit sales per month $283 $291 $223 $226 1,095 1,125

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Corporate Finance

ISBN: 978-1259918940

12th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Question Posted: Dec 13, 2019 07:19 AM

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Patton Corp. currently has an all-cash credit policy. It is considering making a change in the credit

Question:

Current New Policy Policy Price per unit Cost per unit Unit sales per month $283 $291 $223 $226 1,095 1,125

Step by Step Answer:

The cash flow from the old policy is Cash flow from old policy 283 2231095 Cash f...View the full answer

Corporate Finance

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