Question
The Tradition Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.4 percent
| The Tradition Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.4 percent per period. |
| Current Policy | New Policy | |||||
| Price per unit | $ | 82 | $ | 84 | ||
| Cost per unit | $ | 42 | $ | 42 | ||
| Unit sales per month | 3,800 | 3,950 | ||||
| Calculate the NPV of the decision to change credit policies. |
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Risk Management And Financial Institution
Authors: John C. Hull
2nd Edition
0136102956, 9780136102953
