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You Have the Opportunity to Make a One-Time Sale If

Question 308

Multiple Choice

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 _____ grant credit because the net present value of the sale is _____.


A) should; $105
B) should; $109
C) should not; -$58
D) should not; -$47
E) should not; -$33

Correct Answer:

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