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Your firm currently sells 320 units a month at a price of$175 per unit. You think you can increase your sales by an additional 125
Your firm currently sells 320 units a month at a price of$175 per unit. You think you can increase your sales by an additional 125 units if you switch to a net 30 credit policy. The monthly interest rate is 0.5 percent and your variable cost per unit is $94. What is the net present value of the proposed credit polocy switch? Should you proceed or not? Explain. The answer is 1957250. I need FULL SOLUTIONS please, thank you.
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