Evaluate if lealos should proceed or not and explain the, Ask an Expert

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Lealos, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the following information, evaluate if Lealos should proceed or not. Describe the buildup of receivables in this case. The required return is .95 percent per month.

Current Policy New Policy
Price Per Unit $720 $720
Cost Per Unit $495 $495
Unit Sales per month 1,100 1,140

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