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Union Industries is considering a net 30-day credit policy, which it believes will increase sales by 25%. Currently, the company sells 800 units a month
Union Industries is considering a net 30-day credit policy, which it believes will increase sales by 25%. Currently, the company sells 800 units a month at a retail price of $45 a unit and a variable cost of $32 each. Millennium has a required monthly rate of return of 1.75%. What is the net present value of this possible switch in credit policies?
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