Under its current cash sales-only policy JJ sells 186 units per month at a price of $330. the variable costs per unit $155 and the monthly interest rate is 1.3%. The firm believes it can sell an additional 25% per month if it offers a net 30 credit policy. What is the net present value of the switch using the one-shot approach A. $291,543 B. $271,283 C. $312,806 D. $288,946 E. $311,118

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.