Lewis Companies sells 2,600 units a month for cash at a price of $299 a unit...

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Lewis Companies sells 2,600 units a month for cash at a price of$299 a unit and a variable cost of $187 a unit. The firm estimatesit can increase its sales by 200 units a month if it switches to anet 30 credit policy while keeping its price and costs at theircurrent levels. If the monthly cost of capital is .85 percent, whatis the NPV of switching?
A.
$1,590,005
B.
$1,394,008
C.
$1,211,036
D.
$1,820,494
E.
$2,006,413

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Lewis Companies sells 2,600 units a month for cash at a price of$299 a unit and a variable cost of $187 a unit. The firm estimatesit can increase its sales by 200 units a month if it switches to anet 30 credit policy while keeping its price and costs at theircurrent levels. If the monthly cost of capital is .85 percent, whatis the NPV of switching?A.$1,590,005B.$1,394,008C.$1,211,036D.$1,820,494E.$2,006,413