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Codiac Corp. currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30
Codiac Corp. 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. The required return is 0.87% per month.
Current Policy | New Policy | |||||
Price per unit | $ | 230 | $ | 235 | ||
Cost per unit | $ | 170 | $ | 175 | ||
Unit sales per month | 1,650 | 1,700 | ||||
Calculate the NPV of the decision to change credit policies.
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