Question: Devour, Inc., is considering a change in its cash only sales policy. The new terms of sale would be net one month. Based on the

Devour, Inc., is considering a change in its cash only sales policy. The new terms of sale would be net one month. Based on the following information, determine if Devour should proceed or not. Describe the buildup of receivables in this case. The required return is .95 percent permonth

Current PolicyNew Policy Price per unit Cost per unit Unit sales per month $720 $525 1,240 $720 $525 1,290

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