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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 .9 percent per month. |
| Current Policy | New Policy | |||||
| Price per unit | $ | 1,040 | $ | 1,040 | ||
| Cost per unit | $ | 850 | $ | 850 | ||
| Unit sales per month | 1,100 | 1,200 | ||||
| Calculate the NPV of the decision to switch. |
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