Sanchez, 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 1.5 percent per month.

	Current Policy	New Policy
Price per unit	$ 700	$ 700
Cost per unit	$ 420	$ 420
Unit sales per month	1,050	1,135

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

Multiple Choice

$848,605.33

$1,268,866.67

$1,523,200.00

$3,195,966.67

$815,966.67