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A firm sells its products on terms of net 90 at $214 each unit. The PV of the production cost is $91 each unit. The
A firm sells its products on terms of net 90 at $214 each unit. The PV of the production cost is $91 each unit. The monthly interest rate is 1.50%, and there are 30 days per month. It is estimated that only 60% of all orders will be eventually collectable. Orders come in 100 units. What is the expected profit per order?
a.-$8,639
b.$8,639
c.-$3,179
d.$0
e.$3,179
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