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Blackberry 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.

Blackberry 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 would you recommend? The required return in 0.95% per month.

Current policy

New policy

Price per unit

$150 $154

Cost per unit

$130 $133

Unit Sales per month

1,550 1,580

(a) The two policies give the same outcome

(b) Firm A should not switch to the new policy

(c)Firm A should switch to the new policy

(d) None of the above

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