What is the net present value of the proposed switch
Course:- Financial Management
Reference No.:- EM13942911

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Under your current cash sales only policy you sell 110 units a month for a total sales value of $7,590. Your variable cost per unit is $38 and your monthly interest rate is 1.7 percent. Based on a recent survey, you believe that you can sell an additional 30 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? Please show all work.

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