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Vesulvios currently has a cash only policy but is considering going to a net 30 days policy. Its sale price per unit is $125 and
Vesulvios currently has a cash only policy but is considering going to a net 30 days policy. Its sale price per unit is $125 and its variable cost per unit is $96. It currently sells 1,320 units per month, and believes that under the new policy it will sell 1,350 units per month. The required return is 0.95% per month. What is the net present value of this
proposed change? Should the company make it?
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