Hildegarde Inc. is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is 0.95% per month. Price per unit Cost per unit Unit sales per month Current Policy $ $ $ 630 495 1,240 New Policy $ 630 $ 495 1,310 Calculate the NPV of the decision to switch. (Do not round Intermediate calculations. Round the answer to 2 decimal places. Omit "$" sign in your response. Negative answer should be Indicated by a minus sign.) NPV
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- Red Hawk, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .6 percent per month. Price per unit Cost per unit Unit sales per month Current Policy New Policy $ 740 $ 740 $ 540 $540 800 850 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPVRed Hawk, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .62 percent per month. Current Policy New Policy Price per unit $ 760 $ 760 Cost per unit $ 555 $ 555 Unit sales per month 820 870 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)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
- Red Hawk, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .9 percent per month. Price per unit Cost per unit Unit sales per month Current Policy $ 1,040 $ 850 1,100 NPV New Policy $ 1,040 $ 850 1,200 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Fitzgerald Corporation 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 .9 percent per month. Price per unit Current Policy $ 245 New Policy Cost per unit $ 179 $ 250 $184 Unit sales per month 1,740 1,790 Calculate the NPV of the decision to change credit policies. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPVSanchez, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is 1.7 percent per month. Current Policy New Policy Price per unit $ 700 $ 700 Cost per unit $ 420 $ 420 Unit sales per month 1,120 1,220 Based on the above information, determine the NPV of the new policy.
- Fitzgerald, Incorporated, 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 .67 percent per month. Price per unit Cost per unit Unit sales per month Current New Policy Policy $170 $173 $ 134 $ 137 1,290 1,320 Calculate the NPV of the decision to change credit policies. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV Answer is complete but not entirely correct. $ 646.71Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR 600,000 and fixed expenses were OMR 300,000. What is the break-even point in sales (Dollars/Omani Riyals)? Select one: Oa. None of the answers are correct O b.400,000 Oc. 700,000 Od. 300,000 Oe. 100,000 Next pag ENG 16:09 INTL 27/04/20Your business currently only accepts cash-only transactions. You are considering making a change by going to terms of net 30 days. With the following information, should you change your credit policy? Required return per month is 1.05 percent. Current Policy New Policy Price per unit $ 13,150 $ 13,550 Cost per unit $ 10,500 $ 10,500 Unit sales per month 2,750 3,000
- 1. An Investment has expected sales of 40.000 unit with the selling price of $20 each unit. The Variable cost are 65% of sales and fixed cost are $100.000. The Investment would required fixed assets cost s100,000 with useful life 4 years. Assuming a tax rate of 25% percent. What is the projected net income? 2. An investment (new project) has annual cash inflow of $4,000, $5,600, $7,800, and $8,500. For the next 4 years, the discount rate is 9%. What is the discounted payback period for these cash flows if the initial cost is S12,000? What if the initial cost is $16,000? 3. Puma is one of the best sportswear brands in the world. To produce shoes, the variable material cost is S35 per unit and variable labor cost is $4 per unit. a. What is the variable cost per unit? b. Suppose that Puma Fixed cost of $77,000 during a year in which total production of 9,500 units. What are the total costs for the year? c. If the selling price is $85 per unit, what is Puma quantity break-even on cash…A company is considering switching from a cash only policy to a net 30 credit policy. The price per unit is $800 and the variable cost per unit is $600. The company currently sells 1,000 units per month. Under the proposed policy the company expects to sell 1,500 units per month. The quarterly compounded APR is 16%. If you were using NPV analysis to decide whether the company should switch to the net 30 (1-month) credit policy, what amount would you use for the cost of switching? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,234,567.89 should be entered as 1234567.89.) Numeric ResponseA company is considering switching from a cash only policy to a net 30 credit policy. The price per unit is $700 and the variable cost per unit is $600. The company currently sells 1,000 units per month. Under the proposed policy the company expects to sell 1,200 units per month. The quarterly compounded APR is 15%. If you were using NPV analysis to decide whether the company should switch to the net 30 (1-month) credit policy, what amount would you use for the present value of the incremental cash flows?