Under your current cash sales only policy you sell 680 units a month for a total sales value of $101,320. Your variable cost per unit is $77 and your monthly interest rate is 1 percent. Based on a recent survey, you believe that you can sell an additional 275 units per month if you offer a net 30 credit policy. What is the net present value of the proposed switch using the accounts receivable approach?

Group of answer choices

$1,006,203

$987,406

$1,857,505

$1,413,281

$1,605,997