Question: Your company is evaluating a switch from a cash only policy to a net 30 policy. The price per unit is $100 and the variable

Your company is evaluating a switch from a cash only policy to a net 30 policy. The price per unit is $100 and the variable cost per unit is $40. The company currently sells 1,000 units per month. Under the proposed policy the company will sell 1,050 units per month. The required monthly return is 1.5%.

What is the NPV of the switch?

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