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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 1.3 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 1.3 percent per period. |
Current Policy | New Policy | |||||
Price per unit | $ | 53 | $ | 55 | ||
Cost per unit | $ | 31 | $ | 31 | ||
Unit sales per month | 2,150 | 2,275 | ||||
Calculate the NPV of the decision to change credit policies (Show your work) |
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