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Zozan Corp. manufactures Hydrogen engines automobiles. The variable cost is $41,000 per unit, and the credit price is $44,000 each. Credit is extended for one
Zozan Corp. manufactures Hydrogen engines automobiles. The variable cost is $41,000 per unit, and the credit price is $44,000 each. Credit is extended for one period, and based on historical experience, payments for 11% of the orders are never collected. The required return is 3% per period.
Assuming a repeat customer, should it be filled by the firm? The customer will not buy if credit is not extended
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