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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 $750 and the variable
A company is considering switching from a cash only policy to a net 30 credit policy. The price per unit is $750 and the variable cost per unit is $650. The company currently sells 1,900 units per month. Under the proposed policy the company expects to sell 2,000 units per month. The required monthly return is .5%. If you were using NPV analysis to decide whether the company should switch to the net 30 credit policy, what amount would you use for the cost of switching
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