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The Harrington 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 Harrington 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 | $ | 104 | $ | 108 | ||
| Cost per unit | $ | 47 | $ | 47 | ||
| Unit sales per month | 3,240 | 3,295 | ||||
| Calculate the NPV of the decision to change credit policies. (Do not round intermediate calculations.) |
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Contemporary Quantitative Finance
Authors: Carl Chiarella, Alexander Novikov
2010th Edition
3642034780, 978-3642034787
