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Happy Times currently has an all-cash policy. It is considering making a change in the credit policy by going to terms of net 30 days.

Happy Times currently has an all-cash 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 do you recommend? The required return is 0.95 percent per month.

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Price per unit Cost per unit Unit sales per month Current policy $295 $230 1,105 New policy $302 $234 1,125

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