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Sun 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
Sun 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 don't default become repeat customers and they never default. Calculate the NPV?
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