Royal, Inc., is considering a change in its cash-only sales policy. The new terms of sale...
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Royal, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .64 percent per month. Current Policy Price per unit $ 780 New Policy $ 780 Cost per unit Unit sales per month $ 570 $ 570 840 890 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ -700,106.25 Royal, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .64 percent per month. Current Policy Price per unit $ 780 New Policy $ 780 Cost per unit Unit sales per month $ 570 $ 570 840 890 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ -700,106.25
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To calculate the Net Present Value NPV of the decision to switch to the new policy we need to compar... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Posted Date:
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