Question: Devour, Inc., is considering a change in its cash only sales policy. The new terms of sale would be net one month. The required return
| Devour, 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 0.86 percent per month. |
| Current Policy | New Policy | |||||
| Price per unit | $ | 1,000 | $ | 1,000 | ||
| Cost per unit | $ | 810 | $ | 810 | ||
| Unit sales per month | 1,060 | 1,140 | ||||
| Calculate the NPV of the decision to switch. (Round your answer to 2 decimal places. (e.g., 32.16)) |
| NPV | $ |
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