You are considering switching from an all cash credit policy to a net 30 credit policy.You do not expect the switch to affect either your sales quantity or your sales price.Ignoring interest and assuming that every month has 30 days,your net present value of the switch will be equal to:
A)zero.
B)your selling price per unit.
C)your selling price per unit multiplied by -1.
D)your selling price per unit multiplied by -30.
E)your total monthly sales multiplied by -1.

Question

Quizplus · Accepted Answer

The Answer of You are considering switching from an all cash credit policy to a net 30 credit policy.You do not expect the switch to affect either your sales quantity or your sales price.Ignoring interest and assuming that every month has 30 days,your net present value of the switch will be equal to:
A)zero.
B)your selling price per unit.
C)your selling price per unit multiplied by -1.
D)your selling price per unit multiplied by -30.
E)your total monthly sales multiplied by -1.

You Are Considering Switching from an All Cash Credit Policy