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Zozan Corp. manufactures Hydrogen engines automobiles. The variable cost is $25,000 per unit, and the credit price is $43,000 each. Credit is extended for one
Zozan Corp. manufactures Hydrogen engines automobiles. The variable cost is $25,000 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, calculate the NPV for this customer. The customer will not buy if credit is not extended (Do not use the $ sign. if your answer is -$123,456.78, then enter -123456.78).
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