Describe the buildup of receivables

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Question 1: Nayaika, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the following information, determine if Curtin should proceed or not. Describe the buildup of receivables in this case. The required return is 2.0 percent per month.

 

Current
Policy

New
Policy

Price per unit

$ 720

$ 750

Cost per unit

$ 495

$ 495

Unit Sales per month

1,300

1,500       l

Reference no: EM132580225

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