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Company A is considering a change in its cash-only sales policy. The new terms ofsale would be net, one month. Based on the following information,
Company A is considering a change in its cash-only sales policy. The new terms ofsale would be net, one month. Based on the following information, determine ifCompany A should proceed or not. Describe the buildup of receivables in this case. The required return is 1.5 percent per month. Current Policy: Price per unit= 780, Cost per Unit= 475, Unit Sales/Month= 1,420. New Policy: Price per Unit= 780, Cost per Unit= 475, Unit Sales/Month= 1,505
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