Fitzgerald, 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 87 percent per month. Price per unit Cost per unit Unit sales per month Current New Policy Policy $230 $235 $170 $175 1,650 1,700 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.)
Fitzgerald, 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 87 percent per month. Price per unit Cost per unit Unit sales per month Current New Policy Policy $230 $235 $170 $175 1,650 1,700 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.)
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
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Transcribed Image Text:Fitzgerald, 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 87
percent per month.
Price per unit
Cost per unit
Unit sales per month
Current
New
Policy
Policy
$ 230
$235
$170
$175
1,650
1,700
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
$
344,827.59
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