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What is the net present value of the proposed switch

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Question 1: You are currently selling 60 units a month at a price of $195 a unit. Your variable cost of each unit is $155. If you switch from your current cash sales only policy to a net 30 policy you think your sales will increase to a total of 100 units per month. Your monthly interest rate is 0.5 percent. What is the net present value of this proposed switch using the accounts receivable approach?

Reference no: EM132494789

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