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Your current sales consist of 40 units per month at a price of $125 a unit. You are weighing the pros and cons of switching to a net 30 credit policy from your current cash only policy. If you decide to switch your credit policy you also plan to increase the sales price to $139 a unit. If you make the switch you do not expect your total monthly sales to change but you do expect a 1 percent default rate. The monthly interest rate is 1.5 percent. What is the net present value of the proposed credit policy switch?
Cognitive Ability
The capacity to perform various mental activities such as learning, thinking, reasoning, problem-solving, decision-making, and remembering.
Critical Appraisals
The process of systematically examining research evidence to assess its validity, results, and relevance before using it to inform a decision.
Parent-Child Interactions
The dynamic exchanges between a parent and child, encompassing all forms of communication and behavior, and influencing the child's social, emotional, and cognitive development.
Middle Childhood
A developmental stage that typically covers the period from around age 6 to puberty, marked by significant growth in social, cognitive, and physical areas.
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