How could you get the answer and calculate the present value of the selling price?

Candy Corporation sells a product for $25 with costs of $20 per unit. Candy uses a 12% rate of return for all its calculations. The CFO estimates that there is a 25% probability of a prospective new customers seeking credit will go bankrupt within the next 6 months. Customer wishes to place an order for 2,500 units of the product O Do not extend credit; total loss of $5,500 Extend credit; total benefit of $5,300 O Extend credit; total benefit of $5,500 O Do not extend credit; total loss of $5,300 Candy Corporation sells a product for $25 with costs of $20 per unit. Candy uses a 12% rate of return for all its calculations. The CFO estimates that there is a 25% probability of a prospective new customers seeking credit will go bankrupt within the next 6 months. Customer wishes to place an order for 2,500 units of the product O Do not extend credit; total loss of $5,500 Extend credit; total benefit of $5,300 O Extend credit; total benefit of $5,500 O Do not extend credit; total loss of $5,300