Currently, Glasgow Importers sells 855 units a month at a price of $39 a unit. By switching to a net 30 credit policy, sales should increase to 950 units while the price remains constant. The monthly interest rate is .61 percent and the variable cost per unit is $8. What is the net present value of the proposed credit policy switch?
A) $513,360
B) $516,892
C) $490,200
D) $537,520
E) $448,682

Question

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The Answer of Currently, Glasgow Importers sells 855 units a month at a price of $39 a unit. By switching to a net 30 credit policy, sales should increase to 950 units while the price remains constant. The monthly interest rate is .61 percent and the variable cost per unit is $8. What is the net present value of the proposed credit policy switch?
A) $513,360
B) $516,892
C) $490,200
D) $537,520
E) $448,682

Currently, Glasgow Importers Sells 855 Units a Month at a Price