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Solar Engines manufactures solar engines for tractor-trailers. Given the fuel savings available, new orders for 165 units have been made by customers requesting credit. The
Solar Engines manufactures solar engines for tractor-trailers. Given the fuel savings available, new orders for 165 units have been made by customers requesting credit. The variable cost is $10,800 per unit, and the credit price is $13,250 each. Credit is extended for one period. The required return is 1.5 percent per period. If Solar Engines extends credit, it expects that 20 percent of the customers will be repeat customers and piace the sary penod forever, and the remaining cusiomers will lace one-time orders. Calculate the NPV of the decision to grant credit. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV
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