[Question text] Syarikat Sinergi is considering a new credit policy. The current policy is cash only. The new policy would involve extending credit for one period or net 30. Based on the following information, determine if the switch is advisable. The interest rate is 2.5% per period. CURRENT POLICY NEW POLICY Price per unit RM175 RM175 Cost per unit RM130 RM130 Sales per period in units 1.000 1.100 Select one: O A. Yes, the switch should be made because the NPV is RM8,000. B. No, the switch should not be made because the NPV is -RM4,500. C. Yes, the switch should be made because the NPV is RM4,500. D. No, the switch should not be made because the NPV is -RM8,000.
[Question text] Syarikat Sinergi is considering a new credit policy. The current policy is cash only. The new policy would involve extending credit for one period or net 30. Based on the following information, determine if the switch is advisable. The interest rate is 2.5% per period. CURRENT POLICY NEW POLICY Price per unit RM175 RM175 Cost per unit RM130 RM130 Sales per period in units 1.000 1.100 Select one: O A. Yes, the switch should be made because the NPV is RM8,000. B. No, the switch should not be made because the NPV is -RM4,500. C. Yes, the switch should be made because the NPV is RM4,500. D. No, the switch should not be made because the NPV is -RM8,000.
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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![[Question text] Syarikat Sinergi is considering a new credit policy. The current policy is cash only. The new policy
would involve extending credit for one period or net 30. Based on the following information, determine if the switch
is advisable. The interest rate is 2.5% per period.
CURRENT POLICY
NEW POLICY
Price per unit
RM175
RM175
Cost per unit
RM130
RM130
Sales per period in units
1.000
1,100
Select one:
A. Yes, the switch should be made because the NPV is RM8,000.
B. No, the switch should not be made because the NPV is -RM4,500.
C. Yes, the switch should be made because the NPV is RM4,500.
D. No, the switch should not be made because the NPV is -RM8,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa600e192-ef26-4022-9c03-b15005c3aad5%2Fa613ddf8-03bf-47c8-9dad-a2873a72d587%2F7w9vtc5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[Question text] Syarikat Sinergi is considering a new credit policy. The current policy is cash only. The new policy
would involve extending credit for one period or net 30. Based on the following information, determine if the switch
is advisable. The interest rate is 2.5% per period.
CURRENT POLICY
NEW POLICY
Price per unit
RM175
RM175
Cost per unit
RM130
RM130
Sales per period in units
1.000
1,100
Select one:
A. Yes, the switch should be made because the NPV is RM8,000.
B. No, the switch should not be made because the NPV is -RM4,500.
C. Yes, the switch should be made because the NPV is RM4,500.
D. No, the switch should not be made because the NPV is -RM8,000.
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