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A firm sells its products on terms of net 30 at $104 for each unit. The present value of the production cost is $86 per
A firm sells its products on terms of net 30 at $104 for each unit. The present value of the production cost is $86 per unit. The monthly interest rate is 1%, and there are 30 days every month. It is estimated that only 87% of all orders will be eventually collectable. Orders come in 100 units. What is the expected profit/loss per order? No excel answers pls
a. $358
b. $1,697
c. $2,036
d. $299
e. $448
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