Question
Sosin Inc. manufactures hydrogen engines. Recently 350 new orders placed by customers requesting credit. The variable cost is $16,000 per unit, and the credit price
Sosin Inc. manufactures hydrogen engines. Recently 350 new orders placed by customers requesting credit. The variable cost is $16,000 per unit, and the credit price is $18,400 each. Credit is extended for one period, and based on historical experience, payments for 15% of the orders are never collected. The required return is 3% per period. Suppose that customers who dont default become repeat customers and they never default. Calculate the NPV? ( If your answer is negative, use a negative (-) sign. Do not use a positive sign (+) for positive results. Omit the $ sign in your response. For example, an answer of $2.50 should be entered as 2.50)
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