You Are Considering Switching from an All Cash Credit Policy

question 74

Multiple Choice

You are considering switching from an all cash credit policy to a net 30 credit policy.You do not expect the switch to affect either your sales quantity or your sales price.Ignoring interest and assuming that every month has 30 days,your net present value of the switch will be equal to:

• A)zero.
• B)your selling price per unit.
• C)your selling price per unit multiplied by -1.
• D)your selling price per unit multiplied by -30.
• E)your total monthly sales multiplied by -1.

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Definitions:

Doula

A caregiver who provides continuous physical, emotional, and educational support for the mother before, during, and after childbirth.

Caregiver

An individual who provides care and support to another person, often a child, elderly, or someone with special needs, in various aspects including physical, emotional, and developmental aid.

Continuous Support

Ongoing assistance or encouragement provided to someone throughout a particular process or period of time.

Childbirth

The process of delivering a baby from the womb to the outside world, typically culminating in labor and delivery.