Question
Your company is considering switching from a cash only to net 30 policy. The current sale price is $100/unit and variable cost per unit is
Your company is considering switching from a cash only to net 30 policy. The current sale price is $100/unit and variable cost per unit is $70. The company currently sells 300 units per month and expects to sell an additional 20 units per month with the new policy. The required monthly rate of return is 3%. What is the NPV of the switch?
THE CORRECT ANSWER IS -11,400 DOLLARS. But I dont know how they got they answer. Please answer it in a very simple way. thanks.
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Ultimate Manual For Newbie Property Investors
Authors: Kimberly K. Benson
1st Edition
979-8866108688
