Currently, Your fiRm Sells 170 Units a Month at a Price

question 371

Multiple Choice

Currently, your firm sells 170 units a month at a price of $140 a unit. You think you can increase your sales by an additional 30 units if you switch to a net 30 credit policy. The monthly interest rate is .6
Percent and your variable cost per unit is $100. What is the net present value of the proposed credit
Policy switch?

• A) $173,200
• B) $187,200
• C) $190,200
• D) $197,000
• E) $200,000

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Bracero Program

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