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Velez Company sells 2 , 6 0 0 units per month for cash at a price of $ 2 9 9 a unit and a
Velez Company sells units per month for cash at a price of $ a unit and a variable cost of $ a unit. The firm estimates it can increase its sales by units per month if it switches to a net credit policy while keeping its price and costs at their current levels. If the monthly cost of capital is percent, what is the NPV of switching?
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