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Currently, Your fiRm Sells 280 Units a Month at a Price

question 351

Multiple Choice

Currently, your firm sells 280 units a month at a price of $125 a unit. You think you can increase your sales by an additional 70 units if you switch to a net 30 credit policy. The monthly interest rate is .5
Percent and your variable cost per unit is $80. What is the net present value of the proposed credit
Policy switch?


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A method in statistical hypothesis testing that determines the smallest level of significance at which the null hypothesis can be rejected, based on the observed data.

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