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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 0.95% per month.
Current PolicyNew PolicyPrice per unit$150$154Cost per unit$130$133Unit sales per month1,5501,580
Calculate the NPV of the decision to change credit policies.(Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)
NPV$
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