Happy Times currently has an all-cash credit policy. It is considering making a change in the credit

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Happy Times 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. Based on the following information, what do you recommend? The required return is .95 percent per month.

....................................Current Policy............... New Policy

Price per unit .................................$289...................... $296

Cost per unit................................. $226 ...................... $229

Unit sales per month........................ 1,105......................1,125

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Corporate Finance

ISBN: 978-0077861759

11th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Question Posted: Jun 22, 2017 10:12 AM

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Happy Times currently has an all-cash credit policy. It is considering making a change in the credit

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Corporate Finance

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