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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 3.1 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 3.1 percent per period.
Current policy | New Policy | |
Price Per Unit | $89 | $91 |
Cost Per Unit | $49 | $49 |
Unit Sales per Month | 4850 | 4950 |
Calculate the NPV of the decision to change credit policies. (Do not round intermediate Calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
NPV | $ |
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