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HT Corp. is considering a change in its cash only policy to credit policy. The new terms would be net 30 days. Following is the

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HT Corp. is considering a change in its cash only policy to credit policy. The new terms would be net 30 days. Following is the information provided on the price per unit, cost per unit and expected unit sales per month for both the policies. If the required return is 0.90% per month If this is just a one-time order, Should HT Corp. switch to credit policy & why? What is the NPV of switch? If this is like a repeated order every month till perpetuity, Should HT Corp. switch to credit policy & why? What is the NPV of switch? [5] Price/unit Cost/unit Unit sales per month Cash only policy 290 230 1100 Credit Policy 300 234 1110

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