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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 cash-only sales policy. The new terms of
sale would be net one month. The required return is .74 percent per month.
Current Policy New Policy
Price per unit $ 880 $ 880
Cost per unit $ 665 $ 665
Unit sales per month 9401,020
Calculate the NPV of the decision to switch.

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