Anchez, 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 1.7 percent per month. Current Policy New Policy Price per unit $ 700 $ 700 Cost per unit $ 420 $ 420 Unit sales per month 1,120 1,200 Based on the above information, determine the NPV of the new policy.

Answer rating: 100% (QA)

1 Calculate Cash Flows for Both Policies For the current policy the cash flow per unit is Price minu... View the full answer