CJ Stores has current cash-only sales of 218 units per month at a price of $236.55 a unit. If it switches to a net 30 credit policy, the credit sales price will be $249 while the cash price will remain at $236.55. The switch is not expected to affect the sales quantity but a 3 percent default rate is expected. The monthly interest rate is 1.4 percent. 

What is the net present value of the proposed credit policy switch?

Answer rating: 100% (QA)

1 Cashonly sales Sales per month 218 units Cash price per unit 23655 Cashonly monthly revenue 218 un... View the full answer