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Credit policy evaluation

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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

Reference no: EM131857916

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