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

Transcribed Image Text:

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. The required return is 0.76% per month. Price per unit Cost per unit Unit sales per month Current Policy $ $ NPV 185 143 1,380. New Policy 189 $ $147 1,420 Calculate the NPV of the decision to change credit policies. (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit "$" sign in your response.) 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. The required return is 0.76% per month. Price per unit Cost per unit Unit sales per month Current Policy $ $ NPV 185 143 1,380. New Policy 189 $ $147 1,420 Calculate the NPV of the decision to change credit policies. (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit "$" sign in your response.)

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the decision to change credit policies we need to compare ... View the full answer