Question: Currently, your firm sells 440 units a month at a a price of $90 a unit. You think you can increase your sales by an

Currently, your firm sells 440 units a month at a a price of $90 a unit. You think you can increase your sales by an additional 200 units if you switch to a net 30 credit policy. The monthly interest rate is .7 percent and your variable cost per unit is $55. What is the incremental cash inflow of the proposed credit policy switch? What is the present value of the incremental cash flow (perpetuity)? What is the cost of switching and NPV of switching

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