You Are Currently Selling 80 Units a Month at a Price

You are currently selling 80 units a month at a price of $220 a unit. Your variable cost of each unit is
$160. If you switch from your current cash sales only policy to a net 30 policy you think your sales
will increase to a total of 110 units per month. Your monthly interest rate is 1 percent. What is the net
present value of this proposed switch using the accounts receivable approach?

A) $151,500
B) $153,900
C) $154,200
D) $157,600
E) $158,300