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Leeloo, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is
Leeloo, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .72 percent per month. |
Current Policy | New Policy | |||||
Price per unit | $ | 860 | $ | 860 | ||
Cost per unit | $ | 640 | $ | 640 | ||
Unit sales per month | 920 | 990 | ||||
Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
NPV | $ |
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