Codiac Corp. currently has an all-cash credit policy. It is considering making a change in...
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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 0.83% per month.
| Current Policy | New Policy | |||||
| Price per unit | $ | 210 | $ | 215 | ||
| Cost per unit | $ | 158 | $ | 163 | ||
| Unit sales per month | 1,530 | 1,570 | ||||
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.)
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