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Your company is considering granting credit for one month one time for a sale to a new customer. Your variable cost per unit is $47,
Your company is considering granting credit for one month one time for a sale to a new customer. Your variable cost per unit is $47, the current sale price per unit is $145, and the monthly required return is 2.5%. Using the 5 Cs you determine that the probability the client will pay next period is 65%.
What is the NPV of the sale of one unit?
a. $138.95
b. $44.95
c. $2.51
d. $94.46
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