a. A company is assessing granting credit to a new customer. The variable cost per unit is $59, the current price is $135, the probability of default is 31% and the monthly required return is 2.5%. Calculate the NPV if we are looking at repeat business. Round your answer to 2 Decimals (e.g. 2222.05) and the unit is $.

b. A company with an inventory that has a $3.5 per unit carrying cost. The fixed order cost is $100 per order and the firm sells 95,000 units per year. How many orders should be placed based on EOQ?

Round EOQ up to the nearest unit (e.g. 220, no decimals). Round the number of orders to 2 decimals (e.g. 22.05), and the unit is Orders.