b. A seller facing a tax rate of 38 percent has received an order for Tk. 120.000. The cost of material for servicing this order will be 87%, the cost of these goods for tax purposes is the same as the cash cost. The estimated default probability for the applicant is 16% and estimated recovery rate is 60% if the applicant defaults, though the average recovery in such cases is 35%. If the applicant doesn't default payment is expected in 72 days, if the applicant becomes default, it is expected that disbursement from court will be received in 2.5 years. However, only 5% of applicants actually default shown by a market survey. The required rate of return is 12.5%. Calculate expected net present value of credit granting decision when bad debt recognize as they occur and interpret the findings. b. A seller facing a tax rate of 38 percent has received an order for Tk. 120.000. The cost of material for servicing this order will be 87%, the cost of these goods for tax purposes is the same as the cash cost. The estimated default probability for the applicant is 16% and estimated recovery rate is 60% if the applicant defaults, though the average recovery in such cases is 35%. If the applicant doesn't default payment is expected in 72 days, if the applicant becomes default, it is expected that disbursement from court will be received in 2.5 years. However, only 5% of applicants actually default shown by a market survey. The required rate of return is 12.5%. Calculate expected net present value of credit granting decision when bad debt recognize as they occur and interpret the findings