Currently, your firm sells 800 units a month at a price of $100 a unit. You think you can increase your sales by an additional 50 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 $80. 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 800 units a month at a price of $100 a unit. You think you can increase your sales by an additional 50 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 $80. 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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Currently, your firm sells 800 units a month at a price of $100 a unit. You think you can increase your sales by an additional 50 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 $80. 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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