Credit Policy Evaluation
The Snedecker Corporation is considering a change in its cash-only policy. The new terms would be net one period. Based on the following information, determine if the company should proceed or not. The required return is 2.5 percent per period.
Current Policy:
Price per Unit: $73
Cost Per Unit : $38
Unit Sales per Month: 3280
New Policy
Price per Unit: $75
Cost per Unit: $38
Unit Sales per Month: 3390
Please show some of your work or explain how you got your answers