Samana Corporation Expects to Receive $1,500 Along with Costs of $1,000

Samana Corporation expects to receive $1,500 along with costs of $1,000 on each non-delinquent sale on credit.The probability of collection is 60%.Determine whether credit should be extended.

A) Extend credit - net benefit of $100
B) Extend credit - net benefit of $0
C) Do not extend credit - net detriment of $100
D) Do not extend credit - net detriment of $200 p x PV(REV - COST) - (1-p) x PV(COST)