Considering a change in cash-only policy

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The Snedecker Corporation is considering a change in its cash-only policy. The new terms would be net one period. Based on the following information, determine if the company should proceed or not. The required return is 2.5 percent per period.

                                 Current Policy                               New Policy

Price per unit                    $73                                           $75

Cost Per unit                     $38                                           $38

Unit sales per month       3,280                                         3,390

Reference no: EM131402413

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