Question
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 1.7 percent per month.
Price per unit
Cost per unit
Unit sales per month
Current
Policy
$ 700
$ 385
840
New Policy
$ 700
$ 385
865
Based on the above information, determine the NPV of the new policy.
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
4th Edition
0072996862, 9780072996869
