cost on that item is $219 and your monthly interest rate is 1 percent. You the item the customer wants to buy is $325. Your variable person will never credit because the net present value of the sale is grant should: $105

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You have the opportunity to make a one-time sale if you will give a new customer 30
days to pay. You suspect that there is a 50 percent chance that this person will never
pay you. The sales price of the item the customer wants to buy is $325. Your variable
cost on that item is $219 and your monthly interest rate is 1 percent. You
credit because the net present value of the sale is
grant
should; $105
should; $109
should not; -$58
should not; -$47
should not; -$33
----
Transcribed Image Text:You have the opportunity to make a one-time sale if you will give a new customer 30 days to pay. You suspect that there is a 50 percent chance that this person will never pay you. The sales price of the item the customer wants to buy is $325. Your variable cost on that item is $219 and your monthly interest rate is 1 percent. You credit because the net present value of the sale is grant should; $105 should; $109 should not; -$58 should not; -$47 should not; -$33 ----
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