A firm sells its products on terms of net 30 at $205 per unit. The present value

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A firm sells its products on terms of net 30 at $205 per unit. The present value of production cost is $135 per unit. The opportunity cost is 1% per month, and there are 30 days per month. It is estimated that only 70% of all orders are eventually collectible. Orders come in 100 units.

What is the expected profit per order?

Posted Date: May 14, 2024 08:42 AM

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A firm sells its products on terms of net 30 at $205 per unit. The present value

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Answer To calculate the expected profit per order we need to consider the rev... View the full answer

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