Under Your Current Cash Sales Only Policy You Sell 680

Under your current cash sales only policy you sell 680 units a month for a total sales value of $101,320. Your variable cost per unit is $77 and your monthly interest rate is 1 percent. Based on a recent survey, you believe that you can sell an additional 275 units per month if you offer a net 30 credit policy. What is the net present value of the proposed switch using the accounts receivable approach?

A) $987,406
B) $1,006,203
C) $1,413,281
D) $1,605,997
E) $1,857,505