The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net

Question:

The Harrington is considering a change in its cash-only policy. The new terms would be net one period. Based on the following information, determine if Harrington should proceed or not.

Current Policy New Policy Price per unit $108 $104 Cost per unit Unit sales per month $ 47 3,295 $ 47 3,240

The required return is 2.5 percent per period.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...