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The Branson Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 1.7 percent per period. Price per unit Cost per unit Unit sales per month Current Policy New Policy $65 $67 $35 2,750 $35 2,870 Calculate the NPV of the decision to change credit policies. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV

The Branson Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 1.7 percent per period. Price per unit Cost per unit Unit sales per month Current Policy New Policy $65 $67 $35 2,750 $35 2,870 Calculate the NPV of the decision to change credit policies. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV

Essentials Of Investments
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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The Branson Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 1.7 percent per period. Price per unit Cost per unit Unit sales per month Current Policy $ 65 New Policy $ 67 $35 2,870 $35 2,750 Calculate the NPV of the decision to change credit policies. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV
Transcribed Image Text:The Branson Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 1.7 percent per period. Price per unit Cost per unit Unit sales per month Current Policy $ 65 New Policy $ 67 $35 2,870 $35 2,750 Calculate the NPV of the decision to change credit policies. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV
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