Codiac Corp. currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. The required return is 0.84% per month. Price per unit Cost per unit Unit sales per month NPV Current Policy $ 215 $ 161 1,560 Calculate the NPV of the decision to change credit policies. (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit "$" sign in your response.) $ New Policy $ 220 166 $ 1,610

Codiac Corp. currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. The required return is 0.84% per month. Price per unit Cost per unit Unit sales per month NPV Current Policy $ 215 $ 161 1,560 Calculate the NPV of the decision to change credit policies. (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit "$" sign in your response.) $ New Policy $ 220 166 $ 1,610

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 10QTD

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