Covehead Lighthouse Corporation is considering a change in its cash-only policy. The new terms would be...
Covehead Lighthouse Corporation is considering a change in its cash-only policy. The new terms would be net one period. Based on the following information, determine if Covehead Lighthouse should proceed or not. The required rate of return is 2.5% per period.
|
Current Policy |
New Policy |
|
|
Price per unit |
$73 |
$75 |
|
Cost per unit |
$38 |
$38 |
|
Unit sales per month |
3,280 |
3,390 |
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