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What is the npv of switching

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Reference no: EM132709843

Lewis Companies sells 2,600 units a month for cash at a price of $299 a unit and a variable cost of $187 a unit. The firm estimates it can increase its sales by 200 units a month if it switches to a net 30 credit policy while keeping its price and costs at their current levels. If the monthly cost of capital is .85 percent, what is the NPV of switching?

Reference no: EM132709843

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