Credit Policy Evaluation Champions, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the following information, determine if Champions should proceed. Describe the buildup of receivables in this case. The required return is 1.5 percent per month.

Current Policy New Policy Price per unit $ 800 $ 800 Cost per unit $ 475 $ 475 Unit sales per month 1,130 1,195

 LO.1