Ali Storage Company Projects 800 Customers Next Year

question 67

Essay

Ali Storage Company projects 800 customers next year.Of these, 600 have been profitable and
have never defaulted on past obligations, while 200 have not been profitable.All of the unprofitable
accounts are expected to default if given credit.Ali can pay £0.40 to an agency that will tell them
whether a customer has been profitable.If Ali's price per unit is £10, and its cost per unit is £6,
should they allow the credit check to be performed? Assume a discount rate of 1%.

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Definitions:

Unstimulating Environment

A setting that lacks sufficient stimuli, engagement, or challenge, potentially leading to boredom or underdevelopment.

Intellectual Disability

A state defined by major restrictions in intellectual capabilities and adaptive behavior, encompassing a wide range of daily social and practical abilities.

Moderate Intellectual Disability

A level of intellectual disability (IQ between 35 and 49) at which people can learn to care for themselves and can benefit from vocational training.

Dyslexia

A learning disorder characterized by difficulties with accurate and/or fluent word recognition, poor spelling, and decoding abilities.