Currently, your firm sells 370 units a month at a price of $560 a unit. You think you can increase your sales by an additional 100 units if you switch to a net 30 credit policy. The monthly interest rate is.5 percent and your variable cost per unit is $340. What is the net present value of the proposed credit policy switch?
A) $4,001,900
B) $4,008,100
C) $4,158,800
D) $4,560,600
E) $4,641,200

Question

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The Answer of Currently, your firm sells 370 units a month at a price of $560 a unit. You think you can increase your sales by an additional 100 units if you switch to a net 30 credit policy. The monthly interest rate is.5 percent and your variable cost per unit is $340. What is the net present value of the proposed credit policy switch?
A) $4,001,900
B) $4,008,100
C) $4,158,800
D) $4,560,600
E) $4,641,200

Currently, Your Firm Sells 370 Units a Month at a Price