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Under the Current Cash Sales Only Policy Blue Bird,Inc

Question 62

Multiple Choice

Under the current cash sales only policy Blue Bird,Inc.,will sell 215 units a month at a price of $469 each.The variable cost per unit is $305 and the monthly interest rate is 1.7 percent.Based on a recent survey,the firm believes it can sell an additional 36 units per month if it offers a net 30 credit policy.What is the net present value of the switch using the one-shot approach?


A) $212,806
B) $231,543
C) $235,479
D) $248,946
E) $251,118

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