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 1.2 percent per month.

Current Policy New Policy

Price per unit $800 $800

Cost per unit $480 $480

Unit sales per month 1,040 1,070

Based on the above information, determine the NPV of the new policy.

1) $-48,256.00

2) $768,000.00

3) $457,600.00

4) $1,153,600.00

5) $-46,400.00