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 1.8 percent per month.

	Current Policy	New Policy
Price per unit	$ 700	$ 700
Cost per unit	$ 455	$ 455
Unit sales per month	840	880

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

Multiple Choice

$949,355.56

$-64,225.78

$-61,755.56

$522,666.67

$328,844.44