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Credit analyst John Adams is considering a $1,000 order from a new customer. The variable cost of filling the order is 75 percent of sales.
Credit analyst John Adams is considering a $1,000 order from a new customer. The variable cost of filling the order is 75 percent of sales. John estimates collection costs are 6 percent of sales. The customer will pay in 45 days. If the appropriate cost of capital is 12%, what is the NPV of extending credit to the new customer?
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