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Your firm is considering a new credit policy. While its current policy is cash only, the new policy would involve extending credit for one period.
- Your firm is considering a new credit policy. While its current policy is cash only, the new policy would involve extending credit for one period. Based on the following information determine if a switch is advisable if the interest rate is 2.0 percent per period.
Current Policy New Policy
Price per Unit Tshs 1,750 Tshs 1,750
Cost per Unit Tshs 1,300 Tshs 1,300
Sales per Period (Units) 10,000 11,000
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Entrepreneurial Finance Finance For Small Business
Authors: Philip J. Adelman
1st Edition
0138129835, 9780138129835
