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A seller is considering extending trade credit to an existing customer who has been buying on cash terms. The customer has just placed a sales

A seller is considering extending trade credit to an existing customer who has been buying on cash terms. The customer has just placed a sales order (cash terms) for immediate delivery of 50 units at a sales price per unit of $1,300. The customer states that they will increase their sales order by 20% if they receive a 90-day credit period. Variable costs are $845 per unit and involve an immediate cash outflow. If the seller has an annual opportunity cost rate of 4.3%, what is the NPV of extending credit to the customer?
a) $2,270
b)-$3,732
c)-$2,270
d) $3,732
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