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Red Hawk, Incorporated, is considering a change in its cash - only sales policy. The new terms of sale would be net one month. The
Red Hawk, Incorporated, is considering a change in its cashonly sales policy. The new terms of
sale would be net one month. The required return is percent per month.
Current Policy New Policy
Price per unit $ $
Cost per unit $ $
Unit sales per month
Calculate the NPV of the decision to switch.
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