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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 .68 percent per month. |
Current Policy | New Policy | |
---|---|---|
Price per unit | $ 820 | $ 820 |
Cost per unit | $ 600 | $ 600 |
Unit sales per month | 880 | 950 |
Calculate the NPV of the decision to switch
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