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Currently, your firm sells 700 units a month at a price of $80 a unit. You think you can increase your sales by an additional 200 units a month if you switch to a net 30 credit policy. The quarterly compounded APR is 6% and your variable cost per unit is $45. What is the present value for the incremental cash inflow of the proposed credit policy switch? (Do not use the $ sign. If your answer is $1,234.56, enter 1234.56) Numeric Response

Currently, your firm sells 700 units a month at a price of $80 a unit. You think you can increase your sales by an additional 200 units a month if you switch to a net 30 credit policy. The quarterly compounded APR is 6% and your variable cost per unit is $45. What is the present value for the incremental cash inflow of the proposed credit policy switch? (Do not use the $ sign. If your answer is $1,234.56, enter 1234.56) Numeric Response

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Currently, your firm sells 700 units a month at a price of $80 a unit. You think you can increase your sales by an additional 200 units a month if you switch to a net 30 credit policy. The quarterly compounded APR is 6% and your variable cost per unit is $45. What is the present value for the incremental cash inflow of the proposed credit policy switch? (Do not use the $ sign. If your answer is $1,234.56, enter 1234.56) Numeric Response
Transcribed Image Text:Currently, your firm sells 700 units a month at a price of $80 a unit. You think you can increase your sales by an additional 200 units a month if you switch to a net 30 credit policy. The quarterly compounded APR is 6% and your variable cost per unit is $45. What is the present value for the incremental cash inflow of the proposed credit policy switch? (Do not use the $ sign. If your answer is $1,234.56, enter 1234.56) Numeric Response
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