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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 .64 percent per month. |
| Current Policy | New Policy | |||||
| Price per unit | $ | 780 | $ | 780 | ||
| Cost per unit | $ | 570 | $ | 570 | ||
| Unit sales per month | 840 | 890 | ||||
| Calculate the NPV of the decision to switch. |
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