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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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