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Your firm currently sells 2000 units a month at a price of $30 a unit. You...

Your firm currently sells 2000 units a month at a price of $30 a unit. You think you can increase your sales by an additional 20 units if you switch to a net 30 credit policy. The monthly interest rate is 0.5 percent and your variable cost per unit is $18. What is the net present value of the proposed credit policy switch? What is the necessary increase in unit sales to breakeven?

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jeff jeffy answered 1 year ago
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