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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. Based on the following information, what is the NPV of the new policy? The required return is 3 percent per month.
Current Policy New Policy
Price per unit $380 $400
Cost per unit $260 $250
Unit sales per month 2,500 2,700
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