zan Corp. manufactures Hydrogen engines automobiles. Recently 450 new orders placed by customers requ 5,000 per unit, and the credit price is $32,000 each. Credit is extended for one period, and based on histori lers are never collected. The required return is 3% per period. suming a repeat customer, should it be filled by the firm? The customer will not buy if credit is not extended. V. (Do not use the $ sign. if your answer is -$123,456.78, then enter -123456.78)
zan Corp. manufactures Hydrogen engines automobiles. Recently 450 new orders placed by customers requ 5,000 per unit, and the credit price is $32,000 each. Credit is extended for one period, and based on histori lers are never collected. The required return is 3% per period. suming a repeat customer, should it be filled by the firm? The customer will not buy if credit is not extended. V. (Do not use the $ sign. if your answer is -$123,456.78, then enter -123456.78)
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
Problem 1PS
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Transcribed Image Text:Zozan Corp. manufactures Hydrogen engines automobiles. Recently 450 new orders placed by customers requesting credit. The variable cost is
$25,000 per unit, and the credit price is $32,000 each. Credit is extended for one period, and based on historical experience, payments for 40% of the
orders are never collected. The required return is 3% per period.
Assuming a repeat customer, should it be filled by the firm? The customer will not buy if credit is not extended. Answer this question by calculating the
NPV. (Do not use the $ sign. if your answer is -$123,456.78, then enter -123456.78)
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