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Credit Policy Evaluation The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.5 percent per period.
Current Policy New Policy
Price per unit $ 104 $ 108
Cost per unit $ 47 $ 47
Unit sales per month 3,240 3,295
Calculate the NPV of the decision to change credit policies. (Do not round intermediate calculations.)
NPV $
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