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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

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 2 percent per month. Current Policy New Policy Price per unit $ 800 $ 800 Cost per unit $ 480 $ 480 Unit sales per month 960 1,045

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

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$2,591,200.00

$551,200.00

$573,248.00

$1,025,600.00

$1,305,600.00

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