What is the net present value of switch if you ignore taxes

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Reference no: EM132020494

1. Fresno, Inc. has monthly sales of 280 units with a sales price of $38 per unit and a variable cost per unit of $16. Currently, the firm has a cash only policy. Jim, the firm’s financial manager, estimates the firm can sell an additional 25 units per month if the firm would switch to a net 30 credit policy. The monthly interest rate is .3 percent. What is the net present value of the switch if you ignore taxes?

$200,333

$172,293

$194,373

$164,033

2. Common costs : A) are fixed costs that are not directly traceable to an individual product line B) normally not avoidable both A and B are true statements Neither A nor B is a true statement

Reference no: EM132020494

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