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What is the net present value of this possible switch

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Reference no: EM132964387

Problem 1: Lemius Industries is considering a net 30-day credit policy, which it believes will increase sales by 25%. Currently Lemius sells 800 units a month at a retail price of $45 a unit and a variable cost of $32 each. Lemius has a required monthly rate of return of 1.75%. What is the net present value of this possible switch in credit policies?

Multiple Choice

Option 1: $106,171

Option 2: $120,008

Option 3: $99,839

Option 4: $118,971

Option 5: $103,897

Reference no: EM132964387

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