what is the net present value of the switch using the one-shot approach?

Question # 00005608 Posted By: jordinario Updated on: 12/19/2013 12:22 PM Due on: 12/19/2013
Subject Business Topic General Business Tutorials:
Question
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weisbrough united currently has a cash sales only ploicy. Under this policy, the firm sells 410 units a month at a price of $219 a unit. the variable cost per unit is $148 and the carrying cost per unit is $3.30. the monthly interest rate is 1.3 percent. the firm believes it can increase its sales to 475 units a month if it institutes a net 30 credit policy. what is the net present value of the switch using the one-shot approach?

a. $228400
b. $255590
c. $261470
d. $282233
e. $285902
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