Also assume that the customer will either pay in 30 days or will default. What is the incremental cash ﬂow per month from switching?

Question

Quizplus · Accepted Answer

The incremental cash flow per month from switching is $196.00. This is calculated by taking the difference between the cash flow from the new customer and the cash flow from the old customer. The cash flow from the new customer is $315.42, and the cash flow from the old customer is $119.42. The difference between these two amounts is $196.00.

Also Assume That the Customer Will Either Pay in 30