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F. Extension of credit For a single order The firm is considering a proposal to extend credit to a new customer a. the amount of
F. Extension of credit For a single order The firm is considering a proposal to extend credit to a new customer a. the amount of the order: $300,000 b. the contribution margin on the order: 15% c. probability of payment: 90% d. required return on the proposed transaction: 20% Assume the company will incur one half the costs associated with the order at the time it accepts the order, and the other half at the time of delivery, 30 days later. Payment is due 30 days after delivery, 1. What are the expected cash in and outflows from this order? 2. What is the expected net present value of this order? 3. Will the company accept this order
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