50) Suzy can make a one-time sale if she will grant a new customer 45 days...
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50) Suzy can make a one-time sale if she will grant a new customer 45 days to pay. Her customer wants to purchase an item with a sales price of RM530 and a variable cost of RM300. Suzy estimates the probability of default at 25 percent. The monthly interest rate is 0.54 percent. Should she grant credit to her customer? Why or why not? A) Yes; because the NPV of the potential sale is RM53.05 B) Yes; because the NPV of the potential sale is RM44.09 C) Yes; because the NPV of the potential sale is RM95.37 D) No; because the NPV of the potential sale is -RM33.05 50) Suzy can make a one-time sale if she will grant a new customer 45 days to pay. Her customer wants to purchase an item with a sales price of RM530 and a variable cost of RM300. Suzy estimates the probability of default at 25 percent. The monthly interest rate is 0.54 percent. Should she grant credit to her customer? Why or why not? A) Yes; because the NPV of the potential sale is RM53.05 B) Yes; because the NPV of the potential sale is RM44.09 C) Yes; because the NPV of the potential sale is RM95.37 D) No; because the NPV of the potential sale is -RM33.05
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Related Book For
Business Law Text and Cases
ISBN: 978-1337374491
14th edition
Authors: Kenneth W. Clarkson, Roger Miller, Frank B. Cross
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