Woods Inc. has been approached by a new customer who has asked the firm to extend credit for 30 days on a one-time purchase of $250. The firm's required return on receivables is 1.2 percent per month and the variable cost of the desired item is $170. What is the NPV of granting credit if the firm estimates the probability of default is 15 percent? Assume 30 days per month.

Group of answer choices

$17,538.33

-$132.94

$39.98