The Harrington Corporation 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. The required return is 2.5 percent per period.

.................................Current Policy.................. New Policy

Price per unit .............................$104........................... $108

Cost per unit ..............................$ 47 ............................$ 47

Unit sales per month................... 2,870 ..........................2,915