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