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T and D equipment has received an order for 5900000 of equipment from a customer who wishes to be given 8 months to pay the
T and D equipment has received an order for 5900000 of equipment from a customer who wishes to be given 8 months to pay the net invoice amount variable The variable cost to produce the equipment itself is 78% of selling price and T and D costs of funds is 4.0% per annum if expected probability of default is 7.8 % what is the NPV of the sale?
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