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

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Codiac Corp. 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% per month.

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Fundamentals Of Corporate Finance

ISBN: 9781259654756

10th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts, J. Ari Pandes, Thomas Holloway

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Question Posted: Nov 21, 2022 03:34 AM

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

Question:

Price per unit Cost per unit Unit sales per month Current Policy $ 150 $ 130 1,550 New Policy $ 154 $ 133 1,580

Step by Step Answer:

The cash flow from the old policy is Cash flow from old policy 150 1301550 Cash flo...View the full answer

Fundamentals Of Corporate Finance

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