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P20-14 Credit Policy Evaluation [LO2] The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net one period. The
P20-14 Credit Policy Evaluation [LO2] The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 4 percent per period. Current Policy New Policy Price per unit $90 $96 Cost per unit $54 $54 Unit sales per month 3,900 4,040 Required Determine the NPV of the new policy. rev: 09_21_2012 $373,440 $3,883,440 $358,502 $388,378 $-329,280
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