The Branson Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.8 percent per period. Price per unit Cost per unit Current New Policy Policy $ 86 $88 $ 46 $46 4,400 4,500 Unit sales per month 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.) NPV

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
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Chapter16: Working Capital Policy And Short-term Financing
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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 2.8 percent per period.
Current New
Price per unit
Cost per unit
Unit sales per month
Policy
Policy
$86
$ 88
$ 46
$ 46
4,400
4,500
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.)
NPV
Transcribed Image Text:The Branson Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.8 percent per period. Current New Price per unit Cost per unit Unit sales per month Policy Policy $86 $ 88 $ 46 $ 46 4,400 4,500 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.) NPV
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