Question
Red Hawk, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the
Red Hawk, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the following information, determine if the company should proceed or not. The required return is 0.95 percent per month.
|
| Current policy | New policy |
| Price per unit | $485 | $485 |
| Cost per unit | $365 | $365 |
| Unit sales per month | 920 | 975 |
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Stocks For The Long Run
Authors: Jeremy Siegel
6th Edition
1264269803, 978-1264269808
