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

Hansen Corp. 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 1,500 units at a sales price per unit of $2,730. The customer states that they will increase their sales order by 110 units if they receive a 60-day credit period. Variable costs are $1,560 per unit and involve an immediate cash outflow. The seller believes that there is a 10% probability that the customer will default on the trade credit obligation. If the seller has an annual opportunity cost rate of 3.65%, what is the NPV of extending credit to the customer?
a)-$334,423
b) $322,485
c) $342,902
d)-$289,587
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