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Sanchez, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is
Sanchez, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is 1.5 percent per month. |
Current Policy | New Policy | |
Price per unit | $800 | $800 |
Cost per unit | $440 | $440 |
Unit sales per month | 960 | 1,045 |
Based on the above information, determine the NPV of the new policy. |
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