Question: P20-10 Credit Policy Evaluation [LO2] Devour, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one
P20-10 Credit Policy Evaluation [LO2] 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 1.5 percent per month. Current Policy New Policy Price per unit $700 $700 Cost per unit $385 $385 Unit sales per month 980 1,020 Required : Based on the above information, determine the NPV of the new policy. $806,400.00 $138,600.00 $144,144.00 $1,165,266.67 $518,700.00
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