Keep M Flying Is a Wholesaler That Stocks Engine Components

Keep M Flying is a wholesaler that stocks engine components and test equipment for the commercial aircraft industry. A new customer has placed an order for eight high-bypass turbine engines, which increase fuel economy. The variable cost is $1.7 million per unit, and the credit price is $2.1 million each. Credit is extended for one period. Based on historical experience, payment for about 1 out of every 240 such orders is never collected. The required return is 2.8 percent per period. What is the NPV per unit if this is a one-time order?

A) $316,407
B) $328,819
C) $334,290
D) $342,802
E) $351,056