Fitzgerald Corporation currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. The required return is .87 percent per month. Price per unit Cost per unit Unit sales per month Current Policy $ 230 $ 170 1,650 NPV New Policy $ 235 $175 1,700 Calculate the NPV of the decision to change credit policies. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Fitzgerald Corporation currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. The required return is .87 percent per month. Price per unit Cost per unit Unit sales per month Current Policy $ 230 $ 170 1,650 NPV New Policy $ 235 $175 1,700 Calculate the NPV of the decision to change credit policies. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 10QTD

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