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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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