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 1.6 percent per month.

	Current Policy	New Policy
Price per unit	$ 600	$ 600
Cost per unit	$ 360	$ 360
Unit sales per month	840	900

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

Multiple Choice

$374,400.00

$864,000.00

$1,724,400.00

$684,000.00

$389,376.00