Edgeworth Co. has an all-cash policy and sells 50 units per month at $920 a unit. The variable cost is $700 a unit. Should the firm grant 30 days of credit, it expects its sales would rise to 60 units without changes to price or costs per unit. The monthly required return is .75 percent. What is the NPV of switching to a credit policy?

multiple choice

• $240,333

• $258,778

• $346,333

• $366,667

• $266,667

Answer rating: 100% (QA)

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