The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net

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The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net one period. Based on the following information, determine if Harrington should proceed or not. The required return is 2.5 percent per period.

.................................Current Policy.................. New Policy

Price per unit .............................$104........................... $108

Cost per unit ..............................$ 47 ............................$ 47

Unit sales per month................... 2,870 ..........................2,915

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Corporate Finance

ISBN: 978-0077861759

11th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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