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Codiac Corp. currently has an all-cash credit policy. It is considering making a change in the...

Codiac Corp. currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. The required return is 0.87% per month.

Current Policy New Policy
Price per unit $ 230 $ 235
Cost per unit $ 170 $ 175
Unit sales per month 1,650 1,700

Calculate the NPV of the decision to change credit policies.

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