The Berry Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is2.5% per period.Price per unitCost per unitUnit sales per monthNPVCurrent Policy New Policy$$$383,280Calculate the NPV of the decision to change credit policies. (Omit "$" sign In your response. Negative answer should be Indicatedby a minus sign.)383,398

NPV is the dollar return of the change in credit policy. If the NPV is positive that means the…

The Berry Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.5% per period. Price per unit Cost per unit Unit sales per month Current Policy New Policy $ 73 $ 75 $ 38 $ 38 3,280 3,390 Calculate the NPV of the decision to change credit policies. (Omit "$" sign In your response. Negative answer should be Indicated by a minus sign.) NPV $

The Berry Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.5% per period. Price per unit Cost per unit Unit sales per month Current Policy New Policy $ 73 $ 75 $ 38 $ 38 3,280 3,390 Calculate the NPV of the decision to change credit policies. (Omit "$" sign In your response. Negative answer should be Indicated by a minus sign.) NPV $

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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The Branson Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 1.5 percent per period. Price per unit Cost per unit Unit sales per month Current Policy $59 $33 2,450 NPV New Policy $61 $33 2,575 Calculate the NPV of the decision to change credit policies. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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