You Are Trying to Attract New Customers That You Feel

question 66

Multiple Choice

You are trying to attract new customers that you feel could become repeat customers. The average price of the items you sell is $16 with a $9.50 variable cost. Your monthly interest rate is 1.5 percent.
Your experience tells you that 6 percent of these customers will never pay their bill. What would be
The net present value of this decision?

• A) -$217
• B) -$198
• C) $17
• D) $351
• E) $398

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Definitions:

International Law

A body of rules and principles that governs the relations and conduct of nations and international organizations.

Paralegals

Professionals trained in subsidiary legal matters who work under the supervision of lawyers to assist in various legal tasks.

Jurisdiction

The official power to make legal decisions and judgments.

Literally Translated

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