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A seller is considering extending trade credit to an existing customer that buys on cash terms. The customer has just placed a sales order (

A seller is considering extending trade credit to an existing customer that buys on cash terms. The customer has just placed a sales order (cash terms) for immediate delivery of 400 units at a sales price per unit of $100. The customer states that they will increase their sales order by 10 units if they receive a 90-day credit period. Variable costs are $65 per unit and involve an immediate cash outflow. If the seller has an annual opportunity cost rate of 7.3%, what is the NPV of extending credit to the customer? (Ch5: 4 points)
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