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Happy Times currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30
Happy Times currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. The required return is 0.81 percent per month. |
Current Policy | New Policy | |||||
Price per unit | $ | 200 | $ | 204 | ||
Cost per unit | $ | 152 | $ | 156 | ||
Unit sales per month | 1,470 | 1,510 | ||||
Calculate the NPV of the decision to change credit policies. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) |
NPV | $ |
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