Currently,Glasgow Importers Sells 280 Units a Month at a Price

question 33

Multiple Choice

Currently,Glasgow Importers sells 280 units a month at a price of $729 a unit.The firm believes it can increase its sales by an additional 40 units if it switches to a net 30 credit policy.The monthly interest rate is 0.5 percent and the variable cost per unit is $480.What is the net present value of the proposed credit policy switch?

• A)-$213,360
• B)-$9,240
• C)$190,200
• D)$1,287,520
• E)$1,768,680

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