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Patton Corp. currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30
Patton Corp. currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. The required return is .64 percent per month. |
Current Policy | New Policy | |||||
Price per unit | $ | 165 | $ | 168 | ||
Cost per unit | $ | 131 | $ | 134 | ||
Unit sales per month | 1,260 | 1,290 | ||||
Calculate the NPV of the decision to change credit policies. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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