Zozan Corp. manufactures Hydrogen engines automobiles. Recently 450 new orders placed by customers requesting credit. The variable cost is $35,000 per unit, and the credit price is $43,000 each. Credit is extended for one period, and based on historical experience, payments for 20% of the orders are never collected. The required return is 4% per period.

Assuming a repeat customer, should it be filled by the firm? The customer will not buy if credit is not extended