Your Firm Currently Sells 130 Units a Month at a Price

Multiple Choice

Your firm currently sells 130 units a month at a price of $210 a unit. You think you can increase your sales by an additional 50 units if you switch to a net 30 credit policy. The monthly interest rate is.6 percent and your variable cost per unit is $125. What is the net present value of the proposed credit policy switch?

A) $651,989
B) $652,008
C) $666,667
D) $674,783
E) $675,020