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%.

---

Definitions:

Temperament

Individual difference in style of reaction that is present early in life.

Easy Child

A term in developmental psychology referring to children who are generally calm, adaptable and have regular routines.

Cheerful

A mood or state of being noticeably happy or showing joyfulness and optimism.

Resistant Children

Kids who exhibit opposition or non-compliance to authority figures or guidelines, often as a part of their developmental process.