Question: Analysis suggests that Jumpda LLC will pay a bill with the probability of 23.00%. They want to order 2,000 boxes of kitty litter at a

Analysis suggests that Jumpda LLC will pay a bill with the probability of 23.00%. They want to order 2,000 boxes of kitty litter at a net price per box of $46.00. Each box costs your company $27.00.

You believe that the buyer (Jumpda LLC) will be a regular customer in the future, what is the expected Net Present Value of extending this credit? Use a discount rate or required rate of return of 5.00%.

a.

-32840

b.

381620

c.

-39832

d.

572780

e.

133220

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