Find what is the incremental cash inflow of the new policy

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Problem 1: The Dilana Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 1.5 percent per period. The firm has current sales of 4,500 units per month at a price of $70 per unit. The new policy is expected to increase sales to 4,550 units at a price of $70 per unit. The cost per unit is constant at $38. What is the incremental cash inflow of the new policy?

Reference no: EM132813889

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