You Are Trying to Attract New Customers That You Feel

You are trying to attract new customers that you feel could become repeat customers. The average price of the items you sell is $49 with a $35 variable cost. Your monthly interest rate is 1.2 percent.
Your experience tells you that 5 percent of these customers will never pay their bill. What would be
The net present value of this decision?

A) $979
B) $989
C) $1,023
D) $1,073
E) $1,108