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The Snedecker Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 5 percent

The Snedecker Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 5 percent per period.

Current Policy New Policy
Price per unit $ 60 $ 63
Cost per unit $ 30 $ 30
Unit sales per month 3,800 3,900

Determine the NPV of the new policy.

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