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1.Your firm is considering a new credit policy. While its current policy is cash only, the new policy would involve extending credit for one period.Based

1.Your firm is considering a new credit policy. While its current policy is cash only, the new policy would involve extending credit for one period.Based on the following information determine if a switch is advisable if the interest rate is 2.0 percent per period.

Current PolicyNew Policy

Price per UnitTshs 1,750Tshs1,750

Cost per UnitTshs 1,300Tshs1,300

Sales per Period (Units)10,00011,000

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