22)company is considering switching from a cash only policy to a net 30 credit policy....
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22)company is considering switching from a cash only policy to a net 30 credit policy. The price per unit is $500 and the variable cost per unit is $400. The company currently sells 1,200 units per month. Under the proposed policy the company expects to sell 1,300 units per month. The required monthly return is 1%. If you were using NPV analysis to decide whether the company should switch to the net 30 credit policy, what amount would you use for the present value of the future incremental cash flows?
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