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Firm E currently offers 10/0, net 30 credit periods for their customers. They are considering Project N, which will simply remove the discount window and

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Firm E currently offers 10/0, net 30 credit periods for their customers. They are considering Project N, which will simply remove the discount window and only offer "net 30" in the future. Firm E currently produces and sells 12,000 units on day zero. Each unit costs $4 to produce and sells for $9. At present, 30% of customers pay immediately and 70% pay on Day 30. Without the discount, the firm predicts only 11,500 in sales, and all customers will pay on Day 30, The annualized cost of capital is 12% What is the NPV of Project N? $46,840 -526,420 $74,000 -$51,680

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