The required return is 25 percent per period current


The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.5 percent per period. Current Policy New Policy Price per unit $ 104 $ 108 Cost per unit $ 47 $ 47 Unit sales per month 3,240 3,295 Calculate the NPV of the decision to change credit policies.

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Finance Basics: The required return is 25 percent per period current
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