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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 required return
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 .78 percent per month. |
Current Policy | New Policy | |
---|---|---|
Price per unit | $ 920 | $ 920 |
Cost per unit | $ 715 | $ 715 |
Unit sales per month | 980 | 1,060 |
Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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