Problem 28-10 Credit Policy Evaluation Lealos, Inc., is considering a change in

Question

Problem 28-10 Credit Policy Evaluation

Lealos, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .74 percent per month

Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Lealos, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .74 percent per month

Explanation / Answer

Solution:

Cost of switching = $880(940) + $665(1,020

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