Pollys home accents currently sells 345 units a month at a


Question: Polly's Home Accents currently sells 345 units a month at a price of $59 a unit. Polly thinks she can increase her sales by an additional 55 units if she switches to a net 30 credit policy. The monthly interest rate is 0.4 percent and the variable cost per unit is $32. What is the net present value of the proposed credit policy switch?

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Finance Basics: Pollys home accents currently sells 345 units a month at a
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