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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