Under Your Current Cash Sales Only Policy You Sell 132

Under your current cash sales only policy you sell 132 units a month for a total sales value of $9,900.Your variable cost per unit is $44 and your monthly interest rate is 1 percent.Based on a recent survey,you believe that you can sell an additional 25 units per month if you offer a net 30 credit policy.What is the net present value of the proposed switch using the accounts receivable approach?

A) $65,976
B) $66,500
C) $69,081
D) $70,224
E) $73,566