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Currently, your firm sells 700 units a month at a price of $80 a unit. You think you can increase your sales by an additional
Currently, your firm sells 700 units a month at a price of $80 a unit. You think you can increase your sales by an additional 200 units a month if you switch to a net 30 credit policy. The quarterly compounded APR is 6% and your variable cost per unit is $45. What is the present value for the incremental cash inflow of the proposed credit policy switch?
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