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The Berry Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.5 percent

The Berry Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.5 percent per period.

Current Policy New Policy
Price per unit $ 86 $ 88
Cost per unit $ 47 $ 47
Unit sales per month 3,510 3,620

Calculate the NPV of the decision to change credit policies.

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