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Let x be 2. Assume all sales are one-time credit sales with a probability of collection of 96 percent. The variable cost per unit is
Let x be 2. Assume all sales are one-time credit sales with a probability of collection of 96 percent. The variable cost per unit is $1.67, the sales price per unit is $4.99, and the monthly interest rate is 1+x percent. What is the NPV of a credit sale of one extra unit?
A) $3.073
B) $3.026
C) $2.981
D) $2.936
E) $2.892
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