Assume all sales are one-time credit sales with a probability of collection of 96 percent. The variable cost per unit is $1.67, the sales price per unit is $4.99, and the monthly interest rate is 1.35 percent. What is the NPV of a credit sale of one item? $3.18 $2.87 $3.38 $2.92 $3.06

Assume all sales are one-time credit sales with a probability of collection of 96 percent. The variable cost per unit is $1.67, the sales price per unit is $4.99, and the monthly interest rate is 1.35 percent. What is the NPV of a credit sale of one item? $3.18 $2.87 $3.38 $2.92 $3.06

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

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Question

Assume all sales are one-time credit sales with a probability of collection of 96 percent. The variable
cost per unit is $1.67, the sales price per unit is $4.99, and the monthly interest rate is 1.35 percent.
What is the NPV of a credit sale of one item?
$3.18
O $2.87
O $3.38
O $2.92
O $3.06

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