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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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