Devour, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is 1.9 percent per month.

	Current Policy	New Policy
Price per unit	$900	$900
Cost per unit	$540	$540
Unit sales per month	1,080	1,175

Required :

Based on the above information, determine the NPV of the new policy.

rev: 09_21_2012

$1,377,000.00

$807,768.00

$1,728,000.00

$776,700.00

$3,476,700.00