Question
Currently, your firm sells 800 units a month at a price of $78 a unit. You think you can increase your sales by an additional
Currently, your firm sells 800 units a month at a price of $78 a unit. You think you can increase your sales by an additional 50 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 $70. What is the present value for the incremental cash inflow of the proposed credit policy switch?
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Handbook Of Consumer Finance Research
Authors: Jing Jian Xiao
2nd Edition
3319288857, 978-3319288857
