Devour, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is 0.94 percent per month. Current Policy New Policy Price per unit $1,080 $1,080 Cost per unit $890 $890 Unit sales per month 1,140 1,240 Calculate the NPV of the decision to switch.
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- Red Hawk, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .88 percent per month. Price per unit Cost per unit Unit sales per month Current Policy $1,020 $830 1,080 NPV New Policy $1,020 $830 1,180 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Red Hawk, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .62 percent per month. Current Policy New Policy Price per unit $ 760 $ 760 Cost per unit $ 555 $ 555 Unit sales per month 820 870 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Red Hawk, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .96 percent per month. Current Policy New Policy Price per unit $ 1,100 $ 1,100 Cost per unit $ 910 $ 910 Unit sales per month 1,160 1,260 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Typing only. ..
- VijayHildegarde Inc. is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is 0.95% per month. Price per unit Lost per unit Unit sales per month NPV Current Policy S $ 639 $495 1,240 New Policy $ $ Calculate the NPV of the decision to switch. (Do not round Intermediate calculations. Round the answer to 2 decimal places. Omit "$" sign In your response. Negative answer should be Indicated by a minus sign.) 6.30 495 1,310Sanchez, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is 2 percent per month. Current New Policy Policy Price per unit $1,000 $1,000 Cost per unit $550 $550 Unit sales per month 1,400 1,500 Based on the above information, determine the NPV of the new policy. Multiple Choice $795,000.00 O $795,000.00 $3,545,000.00 O $3,545,000.00 $2,160,000.00 $2,160,000.00 $1,575,000.00 $826,800.00
- Fitzgerald Corporation 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 .9 percent per month. Price per unit Current Policy $ 245 New Policy Cost per unit $ 179 $ 250 $184 Unit sales per month 1,740 1,790 Calculate the NPV of the decision to change credit policies. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPVThe Berry Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 1.6% per period. Based on the following information, what is the break-even price per unit that should be charged under the new credit policy? Assume that the sales figure under the new policy is 2,900 units and all other values remain the same. (Round the final answer to 2 decimal places. Omit $ sign in your response.) Price per unit Cost per unit Unit sales per month Current Palicy New Policy $ 67 S 35 2, 900 65 $ 35 2, 750 Break-even priceFitzgerald, Incorporated, 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 .67 percent per month. Price per unit Cost per unit Unit sales per month Current New Policy Policy $170 $173 $ 134 $ 137 1,290 1,320 Calculate the NPV of the decision to change credit policies. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV Answer is complete but not entirely correct. $ 646.71
- CJ Stores has current cash-only sales of 218 units per month at a price of $236.55 a unit. If it switches to a net 30 credit policy, the credit sales price will be $249 while the cash price will remain at $236.55. The switch is not expected to affect the sales quantity but a 3 percent default rate is expected. The monthly interest rate is 1.4 percent. What is the net present value of the proposed credit policy switch? a. 24,727 b. 27,965 c. 26,893 d. 29,481 e. 25,978The Snedecker Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2 percent per period. Based on the following information, what is the break-even price per unit that should be charged under the new credit policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price per unit Cost per unit Unit sales per month Break-even price $ Current Policy $ 53 $31 2,150 New Policy ? $ 31 2,400A 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 $350. The company currently sells 1,400 units per month. Under the proposed policy the company expects to sell 1,500 units per month. The monthly compounded APR is 18%. Calculate the NPV of this switch. Assume that there are 30 days in one month. (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50) .
