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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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