Under your current cash sales only policy you sell 170 units a month at a price of $42. Your variable cost per unit is $28 and your monthly interest rate is 1.25 percent. Based on a recent survey, you
Believe that you can sell an additional 60 units per month if you offer a net 30 credit policy. What is
The net present value of the switch using the one-shot approach?
A) $57,659
B) $58,380
C) $60,420
D) $61,860
E) $63,333
Correct Answer:
Verified
Q116: Under your current cash sales only policy
Q117: Callahan Computers has decided to offer credit
Q118: Your firm currently sells 215 units a
Q119: A local food wholesaler has an average
Q120: Your firm currently sells 500 units a
Q123: What is the NPV of switching?
A) -$5,000
B)
Q124: Karloff Medical Supply maintains an average inventory
Q125: You just purchased $8,700 of goods from
Q125: Karloff Medical Supply maintains an average inventory
Q126: Your current sales consist of 55 units
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