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25 TESLA manufactures solar engines for tractor-trailers. Given the fuel savings available, new orders for 120 units have been made by customers requesting credit. The

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25 TESLA manufactures solar engines for tractor-trailers. Given the fuel savings available, new orders for 120 units have been made by customers requesting credit. The variable cost is $9,000 per unit, and the credit price is $11,000 each. Credit is extended for one period. The required return is 1.5 percent per period. If TESLA extends credit, it expects that 40 percent of the customers will be repeat customers and place the same order every period forever and the remaining customers will be one-time orders. Calculate the NPV of the decision to grant credit. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV

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