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A company is considering switching from a cash only policy to a net 30 credit policy. The price per unit is $400 and the variable
A company is considering switching from a cash only policy to a net 30 credit policy. The price per unit is $400 and the variable cost per unit is $250. The company currently sells 1,400 units per month. Under the proposed policy the company expects to sell 1,600 units per month. The monthly compounded APR is 24%. Calculate the NPV of this switch (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50). Numeric Response
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