Lemius Industries Is Considering a Net 30-Day Credit Policy, Which

question 360

Multiple Choice

Lemius Industries is considering a net 30-day credit policy, which it believes will increase sales by 25%. Currently Lemius sells 800 units a month at a retail price of $45 a unit and a variable cost of $32 each. Lemius has a required monthly rate of return of 1.75%. What is the net present value of this possible switch in credit policies?

• A) $99,839
• B) $103,897
• C) $106,171
• D) $118,971
• E) $120,008

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